RWE "neutral," target price reduced

28.06.07 - J.P. Morgan Securities

LONDON, June 28 (newratings.com) - Analysts at JP Morgan maintain their "neutral" rating on RWE (RWE), while reducing their estimates for the company. The target price has been reduced from ?77.5 to ?72.7.

In a research note published this morning, the analysts mention that the company may reduce its EPS guidance for FY07 in view of the Biblis outage extension. Uncertainty over competition policy and regulation is likely to continue until well into 3Q, the analysts say. The EPS estimate for 2007 has been reduced from ?4.98 to ?4.67. The target price has been reduced to reflect recent bond yield increases, JP Morgan adds.