RWE Kept at Overweight as Barclays Notes Underestimated Growth Potential

01:28 AM EST, 12/12/2025 (MT Newswires) -- Barclays maintains its positive stance and overweight rating for RWE (RWE.F), saying the German utility company's potential future growth and transformation are undervalued by investors amid near-term catalysts. "Our optimism on RWE is supported by five key factors: 1) RWE's sector-leading EPS growth, with a ~14% [compound annual growth rate] (excl. book gains) over 2025-30E, which is double the sector average; 2) what we see as the undervaluation of capex, both historical (~(Euro)13bn carrying value for plants under construction equivalent to ~(Euro)18/share) and future; 3) our adjusted EPS projections for 2027 being 2% higher than the Bloomberg sell-side consensus; 4) this upside that we see vs. consensus also extending to our price target of (Euro)52.0, which is around 7% above the Bloomberg sell-side consensus average of (Euro)48.75. We attribute this difference to higher assumed value creation from medium-term growth capex; 5) the superior potential catalyst timeline we see leading up to the FY25 results in mid-March 2026 (incl. newsflow on AR7 and the new German baseload capacity support mechanism in early 2026)," according to the research firm's European Utilities sector report published Thursday. Analysts also slightly lowered their adjusted EPS forecasts for RWE on lower 2025 wind speeds and the Amprion deal.