Despite the decent price increase in the last quarter, RWE stock is not a winner of the stock market year 2023 – compared to the beginning of January, the share is still slightly in the red and is quoted at around 40 euros (as of December 22nd, around 10am). The long-term prospects for RWE stock are very good.

On the one hand, the quarterly and nine-month figures were convincing. RWE is likely to exceed the set annual targets. On the other hand, all analysts agree and see buy prices for the energy company. Now RWE has announced the purchase of offshore wind farms in the UK.

RWE expands its portfolio with wind farms in the UK 3 planned offshore wind farms in the UK with a capacity of 4.2 gigawatts were recently on ice. Now RWE has bought Vattenfall’s portfolio and will complete the projects. The value of the transaction is 963 million British pounds, the purchase is expected to be completed in Q1 of 2024.

RWE is steadily expanding its renewable energy capacities and plans to continue to invest here – the company plans massive investments by 2030. Between 2024 and 2030, RWE wants to invest 55 billion euros worldwide in green technologies. The green portfolio should increase from today’s approx. 35 gigawatts to more than 65 gigawatts.

RWE stock: Investors should look here carefully. There is currently a lot right with the RWE stock: The current business year can be successfully completed. The goals – EBITDA between 7.1 and 7.7 billion euros, net income between 3.3 and 3.8 billion euros – should easily be achieved by the DAX company. The prospects for the coming years can also be seen.

With this in mind, the performance of the RWE share has not been convincing in the last quarters – in other words, there is still a lot of upside potential here. The analysts also see this, who have all unanimously attributed higher target prices to the DAX paper, in rare agreement.

Some examples from December: UBS has set the target price two weeks ago at 52 euros (potential around 27 percent), JPMorgan and Morgan Stanley even see target prices of 59.50 euros or 60 euros. That’s more than 45 percent potential based on the current price. Medium and long-term oriented investors should have the RWE share on their list.