FRANKFURT (dpa-AFX) - RWE shares recovered somewhat on Tuesday from their very weak start to the year. The securities of the energy company rose by 1.10 percent to 39.50 euros by late morning, making it one of the best performers in the Dax. Shares in fellow industry player Eon gained 1.14 percent at the top of the index. The German benchmark index fell by half a percent.

RWE shares had temporarily accumulated a loss of up to 8.5 percent since the beginning of the year on Wednesday. The papers suffered from the recent sharp drop in electricity prices against the backdrop of the unusually mild winter in Europe.

Now, analysts at U.S. investment bank Morgan Stanley have been positive about the outlook for renewable energy providers such as RWE. Despite large project pipelines and clear decarbonization targets of the companies, the share prices of most industry representatives are currently pricing in growth beyond 2030 that is not already firmly secured. Concerns about the sector's performance, fueled by rising interest rates, congestion and inflation, are overblown, he said./la/mis