RWE Stock: Expectations Exceeded, Forecast Confirmed

Last Updated: 14. November 2023By

The RWE share has been able to gain significantly in the past 6 weeks and continues the trend after the publication of the nine-month figures. The paper is quoted in the morning trade at around 37 euros, up 1 percent (as of 14 November, around 9.30 am).

As part of the quarterly figures, RWE has confirmed its forecast for the current year. The goals have almost been reached after 9 months. Profit-wise, the DAX company has recently impressed and exceeded expectations. The RWE share also has potential at the current valuation in the medium and long term.

RWE with hefty profits after 9 months of 2023 With an EBITDA of 6.15 billion euros, RWE exceeded the expectations of analysts – and compared to the same period of the previous year (around 3.39 billion euros) it has grown significantly. After 9 months, net profit also rose to 3.38 billion euros. Both energy trading and electricity generation revenues have contributed to the profit.

RWE has now confirmed its forecast for the full year. The energy company still expects an EBITDA between 7.1 and 7.7 billion euros and net income between 3.3 and 3.8 billion euros. Both will be achieved or exceeded by RWE given the strong nine-month figures.

RWE share: Short and long term on track Investors may be disappointed in view of the „only“ confirmed annual forecast – because the outlook is obviously very conservative. At the same time, however, this means that RWE shareholders can look forward to further positive news in the coming weeks and months.

In 2 weeks, RWE will present an „update of the strategy“ at the capital market day in London and possibly also give the share new impetus. In the short term, the RWE share is on a good path, so far this year the paper has lost more than 10 percent. A year-end rally is therefore conceivable.

In the long term, the energy company is also on track: High investments in the green portfolio of renewable energies are already paying off today, there is still growth potential here. The lucrative energy trading will also bring a lot of money into the coffers in the coming years. Important for investors: The RWE share is by no means highly valued, the P/E ratio is in the single digits at the current level and the dividend yield is around 2.7 percent.