RWE "buy"

09.11.06 - Dresdner Kleinwort Wasser.

LONDON, November 9 (newratings.com) - Analysts at Dresdner Kleinwort reiterate their "buy" rating on RWE AG (RWE). The target price is set to ?95.70.

In a research note published this morning, the analysts mention that the company has reported its 9M results broadly in-line with expectations. RWE has reduced its recurring net income guidance for the full year to the lower end of the previous guidance range of 10%-20% on account of Biblis-related issues. RWE is expected to post its operating result for 2006 at ?6,963 million, with Biblis A&B being excluded for the rest of the year, the analysts say. Dresdner Kleinwort expects the company's net income to be significantly higher than was earlier anticipated in view of the book gain on Thomas Water.