Publication date: May 10, 2024

RWE AG: Utility companies ready to catch up?

The name RWE will probably not sound familiar to everyone. Unknown makes unloved. RWE, however, is a company with considerable share price potential, which is why we would like to inform you about them.

RWE is one of the big four energy groups in Germany. With over 20,000 employees and sales of €28 billion, it is a player in the European energy sector that counts internationally. Moreover, the company has 125 years of history.

Price development: analysis and trends

RWE falls into the Utilities sector. This sector has lagged considerably behind the rise in equity markets. Moreover, within the sector, companies focused on solar and wind energy have been further undervalued. This trend can be seen in the chart below of RWE compared to the AEX over the past six months.



RWE has fallen back from € 42 to € 30 over the past six months (minus 28%). In the past month, we have seen a nice set-up for a recovery. With the current share price at € 34, the catch-up race has already begun and, in the most likely technical scenario, can continue up to € 40, with a run-up to € 43.
Most top banks' fundamental analysis leans towards a buy recommendation for RWE, with an average price target of €46, indicating a promising outlook for potential investors.