RWE "buy"

30.11.06 - Dresdner Kleinwort Wasser.

LONDON, November 30 (newratings.com) - Analysts at Dresdner Kleinwort maintain their "buy" rating on RWE AG (RWE). The target price is set to ?94.40.

In a research note published this morning, the analysts mention that the company's CO2 allocations to its power plants have been cut by 7% by the EC. The higher-than-expected allocation cuts are expected to result in a deficit of approximately 260 mtpa during 2008-2012, the analysts say. CO2 prices are expected to increase until CO2 intensive processes are reduced, Dresdner Kleinwort adds.