UBS maintained its bullish outlook on German utility RWE on Friday, reaffirming a buy rating and a €68 price target as analysts anticipate strong returns from upcoming auctions of combined-cycle gas power plants.
Analyst Wanda Serwinowska said the company’s exposure to CCGT assets positions it to achieve double-digit returns from the auction process, reinforcing UBS’s positive stance. The bank first set the €68 target in a note published earlier this year, and Serwinowska confirmed the rating and valuation in a Friday update.
RWE’s CCGT portfolio includes high-efficiency gas-fired plants that benefit from Germany’s energy transition policies, which prioritize flexible, low-carbon generation to complement intermittent renewable sources. The auctions, expected in the coming quarters, are seen as a key catalyst for the company’s earnings trajectory, according to UBS.
The Swiss bank’s rating and price target remain unchanged from its prior assessment, underscoring confidence in RWE’s strategic positioning amid Europe’s evolving energy landscape.
