RWE "reduce," target price raised

17.10.06 - Dexia Securities

LONDON, October 17 (newratings.com) - Analysts at Dexia Securities reiterate their "reduce" rating on RWE (RWE). The target price has been raised from ?65.8 to ?75.

In a research note published this morning, the analysts mention that the sale of Thames Water to Kemble Water is progressing ahead of expectations. A sale price of £4.8 billion, excluding £3.2 billion in debt, takes the total enterprise value to £8 billion, the analysts say. Taking into account American Water, RWE?s water business would be valued at ?22.4 billion, as compared to the previous estimate of ?17.2 billion, Dexia Securities adds.