AlphaValue lifts RWE to 'add' on Amprion deal, clearer strategy

RWE AG

Today 09:44

** AlphaValue upgrades Germany's largest power provider RWE RWEG.DE to "add" from "reduce," citing the group's investment in Amprion, clearer strategic focus
** The utility said on Monday it increased its holding in high-voltage grid operator Amprion to 55% from 20% for €3.6 billion ($4.09 billion), funded through equity
** "We see the transaction as further reinforcing RWE’s positioning as an integrated utility," the broker says
** It points to the deal's "attractive" regulatory asset base ratio and possibility of full consolidation in the future
** The broker also sees a clearer strategic direction with expansion of renewables development in the U.S., mix of onshore renewables, battery storage and gas projects in Europe
** RWE said in March it plans to spend €17 billion in the United States by 2031, projects net investments of €35 billion on group level from this year until 2031
** Out of 22 analysts covering RWE, 18 rate the stock "strong buy" or "buy", ​three rate "hold" and one rates "sell" — LSEG data
($1 = 0.8802 euros)

(Reporting by Danny Callaghan)
((danny.callaghan@thomsonreuters.com))