RBC Capital Mkts Decides to Downgrade RWE AG (OTCMKTS:RWEOY) Stock

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RWE AG (OTCMKTS:RWEOY) Receives a Downgrade

RBC Capital Mkts has given RWE AG (OTCMKTS:RWEOY) shares a new Underperform rating in an analyst note disseminated on Thursday morning. This was a ratings downgrade from the past Sector Perform rating.

From a total of 1 analysts covering RWE AG (OTCMKTS:RWEOY) stock, 0 rate it a ”Buy”, 0 a “Sell”, and 1 a ”Hold”. This means that 0% of the ratings are positive. The highest target price is $14.31 while the lowest target price is $14.31. The mean of all analyst targets is $14.31 with a 2.46% above today’s ($12.2) stock price. RWE AG was the topic of 10 analyst reports since August 18, 2015 according to the firm StockzIntelligence Inc. Jefferies initiated shares on December 3 with “Hold” rating. Societe Generale downgraded RWEOY stock in a recent report from November 17 to “Hold” rating. Finally, RBC Capital Markets upgraded the stock to “Sector Perform” rating in a report issued on an October 1.

The stock increased 4.50% or $0.52 on December 16, striking $12.2. Approximately 110,513 shares of stock traded hands or 17.65% up from the average. RWE AG (ADR) (OTCMKTS:RWEOY) has declined 52.25% since May 14, 2015 and is downtrending. It has underperformed by 49.99% the S&P500.

RWE AG is an electricity and gas company. The company has a market cap of $7.42 billion. The Firm engages in lignite production; electricity generation from gas, coal, nuclear and renewables, and in energy trading, as well as electricity and gas distribution and supply. It has 6.92 P/E ratio. The Company’s markets include Germany, the Benelux region, the United Kingdom, and Central Eastern and South Eastern Europe.

According to Zacks Investment Research, “RWE AG is among Europe’s five largest utilities. RWE is active in the generation and transmission as well as the sale and trading of electricity and gas. RWE is also active in the water business in Continental Europe. This integrated business model gives them a good position from which to take advantage of the rising demand for energy. RWE is the biggest power producer in Germany and No. 2 in the UK. RWE continues to expand its position in Central and South-Eastern Europe. Their comprehensive power plant portfolio and investment programme for the modernization and construction of new generation capacity are the basis for growing earnings in the future. RWE’s gas and oil production business is displaying above-average growth. In light of ever-higher global demand, RWE will steadily increase the share of gas it produces in-house.”

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