RWE "neutral"

06.09.07 - J.P. Morgan Securities

LONDON, September 6 (newratings.com) - Analyst Chris Rogers of JP Morgan maintains his "neutral" rating on RWE AG (RWE). The target price is set to ?73.2.

In a research note published this morning, the analyst mentions that the company continues to face the threat of the appearance of mega peers, which might pose challenges in the long term. The analyst believes a demerger would help RWE face competitive concerns. A demerger would also help the company to concentrate on rationalising its network operations and provide RWE with substantial funds for consolidation in the network industry, JP Morgan adds.