RWE Share: Takeover rumors and stumbling start

Last Updated: 22. Januar 2024By

RWE stock started the new stock market year with losses after a strong final push in 2023. Since the beginning of 2024, the stock has fallen by around 9 percent and is now trading well below the 40 euro mark again (as of January 22, 2024, around 10 a.m.).

Recently, takeover rumors surrounding the offshore wind company Ørsted have weighed on RWE stock. Whether RWE’s interest in the Danish giant is really serious and whether a deal would even be realistic is currently not foreseeable. However, this is not necessarily decisive for investors. Because: In the medium and long term, RWE stock is still an interesting investment.

RWE interested in Danish Ørsted According to a report by „Manager Magazin,“ RWE is interested in acquiring the offshore company Ørsted. The Danish company has recently had to stop major projects – and is currently not as highly valued as a result.

However, the Danish state holds 50.1 percent of the company and is currently reportedly not convinced of a deal with RWE. A merger of the two companies would create a European giant in the field of renewable energies – at the moment, such a takeover is still uncertain and does not seem particularly likely in the short term.

RWE stock: Long-term prospects are promising Regardless of the takeover rumors, RWE stock remains an exciting investment for long-term oriented investors, especially after setbacks. The company’s 2030 strategy is also impressive: RWE plans to invest 55 billion euros in green technologies between 2024 and 2030.

Capacity is expected to increase to 65 gigawatts by 2030. For comparison: In 2021, it was only 9 GW, currently it is around 35. Adjusted EBITDA is expected to reach over 9 billion euros by 2030, and the dividend is also expected to increase annually.

Analysts are also optimistic: Most still see clear buying opportunities for RWE stock. Recently, Deutsche Bank (raised target price from 51 to 55 euros) and the private bank Berenberg (raised target price from 58.50 to 59 euros) have confirmed their positive assessments.