Background of the Rating
- Sector Performance: The European utilities sector has developed 10% better than the overall market since the beginning of the year.
- Valuation Attractiveness: Despite the outperformance, Jefferies continues to see an attractive valuation level for RWE.
- Achievement of Targets: RWE is projected to meet operational targets set for 2025, supported by stable conditions and strategic direction.
Market Reaction and Stock Performance
On the day of publication (April 14), RWE shares rose by 1.5% to €33.32 in XETRA trading, with a trading volume of over 771,000 shares. Since the beginning of the year, the stock has recorded a gain of 15.6%, highlighting the positive market response.
Context to Economic Significance
The confirmation of the “Buy” rating reflects:
- The increasing relevance of energy companies in the energy transition.
- The expectation of stable cash flows through regulatory secured business models in the utility sector.
For investors, especially relevant is the indicated price target potential of around 20% against the price level at the time of analysis (€33–34).