Barclays Expects Guidance Hike from RWE Alongside H1 Results; Overweight Rating Kept

04:03 AM EDT, 07/28/2026 (MT Newswires) -- Barclays forecasts RWE (RWE.F) will upgrade its "overly conservative" full-year 2026 outlook when the German energy group releases its first-half earnings on Aug. 13. "The current guidance, issued on 12 March, has not yet been updated for the EUR332m EBITDA [one-off] booked in 1Q26 relating to compensation for production restrictions at the Eemshaven power plant in the Netherlands. Nor does it yet reflect the EUR3.6bn purchase of an additional 35% stake in Amprion, completed on 24 July," according to a Tuesday note. "On our numbers, 1H26 adj. net income of EUR955m would already represent ~53% of the midpoint of FY26 adj. net income guidance (EUR1,550-2,050m), leaving RWE well positioned to over-deliver in 2026, supported by a full contribution from Thor and further renewable capacity additions." Barclays forecasts group adjusted EBITDA of 2.71 billion euros and adjusted EBIT of 1.47 billion euros, bolstered by expected improvements in generation, capacity additions and normalization of supply and trading. It noted that the interim results should be "well received." Against this backdrop, Barclays maintained its overweight rating, with a price target of 68 euros, saying the upcoming German power plant strategy offers a "clear near-term catalyst" for a broader reevaluation of the company's flexible generation assets.