RWE "buy," target price raised

12.09.06 - Dresdner Kleinwort Wasser.

LONDON, September 12 (newratings.com) - Analysts at Dresdner Kleinwort maintain their "buy" rating on RWE (RWE-EUR). The target price has been raised from ?85.00 to ?93.50.

In a research note published this morning, the analysts mention that the disposal of RWE?s water activities is expected to resolve concerns regarding the capital intensity of the company?s underperforming asset. The current valuation of RWE?s stock underestimates the company?s earnings growth potential, the analysts add.