RWE "reduce"

19.05.06 - Dexia Securities

LONDON, May 19 (newratings.com) - Analyst Steven DeProost of Dexia Securities maintains his "reduce" rating on RWE (RWE-EUR). The target price is set to ?65.8.

In a research note published this morning, the analyst mentions that the company has sold off its energy and technical services unit, RWE Solutions, to Advent International. RWE Solutions consisted of several businesses that could not be integrated easily and hence its sell-off by RWE is seen as a sound strategic move, the analyst says. The sale is likely to enable RWE to focus on the pure power and gas industry and have low-margin technical services outsourced via RWE Solutions, Dexia Securities adds.