Oddo BHF reaffirms its 'outperform' rating on RWE, with a price target lowered from €50 to €46, following the publication on Friday of preliminary results that came in above guidance and the research firm's estimates for 2023.

The analyst points out, however, that "the Group has acknowledged that the recent fall in energy prices has led it to anticipate 2024 results at the lower end of its guidance", and therefore reduces its EPS estimates by 3% to 8% for the period 2024-30.

He nevertheless points out that RWE is suffering from a discount of around 20% to its peers on the value of its renewable assets, and that it is one of the least indebted companies in the sector, enabling it to self-finance its ambitious investment plan.

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