RWE "reduce"

09.11.06 - Dexia Securities

LONDON, November 9 (newratings.com) - Analysts at Dexia Securities maintain their "reduce" rating on RWE (RWE). The target price is set to ?75.

In a research note published this morning, the analysts mention that the company has reported its latest operating results in-line with expectations. While the absence of an upgrade to RWE?s EBIT guidance has disappointed the market, the guidance seems realistic in view of the regulatory effects on the Biblis outages, the analysts say. While the sale of Thames Water is a sound decision, there is uncertainty surrounding Biblis-related issues and the company's utilization of cash proceeds, Dexia Securities adds.