RWE "buy," target price raised

18.10.06 - Dresdner Kleinwort Wasser.

LONDON, October 18 (newratings.com) - Analysts at Dresdner Kleinwort maintain their "buy" rating on RWE (RWE). The target price has been raised from ?93.50 to ?95.70.

In a research note published this morning, the analysts mention that the company has indicated the sale of Thames Water UK to Kemble Water for £8 billion, and is expected to record a book gain. The sale price represents a 27% premium to RAM (regulatory asset base), the analysts say. The deal is expected to be completed in December, Dresdner Kleinwort adds.