RWE upgraded to "neutral"

06.08.07 - Dexia Securities

LONDON, August 6 (newratings.com) - Analysts at Dexia Securities upgrade RWE (RWE) from "reduce" to "neutral." The target price has been raised to ?80.

In a research note published this morning, the analysts mention that the company is expected to post robust 1H results on August 9, primarily driven by the RWE Power unit, which is likely to have achieved an ?8 per MWh hike in average realised forward price. RWE?s operating results are expected to have risen by 21.7% during the period, significantly ahead of the guidance, which could lead to a possible increase in the guidance for 2007, the analysts say. A potential lifetime extension for nuclear in Germany would boost the company?s equity value by over 5%, Dexia Securities adds.