RWE AG price target lowered to EUR 36 from EUR 45 at Jefferies

Jefferies analyst Ahmed Farman lowered the firm’s price target on RWE AG to EUR 36 from EUR 45 and keeps a Buy rating on the shares. The firm notes that year-to-date RWE’s stock has fallen c.25%, with a profit warning for FY24 in end-January. While commodity weakness and negative earnings revisions are likely to dominate the short-term debate, Jefferies sees RWE’s best-in-class balance sheet, ability to organically fund EUR 55B of renewable capex to 2030 and solid track-record on project execution as credible long-term drivers of the investment case.