RWE AG: Game Changing Grid Growth

Research evidence excerpt

RWE AG: Game Changing Grid Growth

Idea

July 23, 2026 04:00 AM GMT

Morgan Stanley & Co. International plc+MRWE AG | Europe Robert Pulleyn

Equity Analyst and Commodity Strategist

Game Changing Grid Growth Robert.Pulleyn@morganstanley.comArthur Descazeaud +44 20 7425-4388

Research Associate

What’s Changed Arthur.Descazeaud1@morganstanley.com +44 20 7677-1282

RWE AG (RWEG.DE) From To Morgan Stanley Europe S.E., Paris Branch+

Price Target €66.00 €75.00 Arthur Sitbon, CFA

Equity Analyst

Arthur.Sitbon@morganstanley.com +33 1 42 90 71-03

Powerhouse RWE pivots back to Germany and grid exposure,

Morgan Stanley & Co. International plc+

making for a more integrated, diversified equity story with Sarah E Lester, CFA

enhanced, extended earnings growth, as well as improved Equity Analyst

Sarah.Lester@morganstanley.com +44 20 7425-0551

earnings quality. High EPS growth implies the stock should grow Marina Fuentes Juan

into the multiple quickly and offer further attractive upside. Research Associate

Marina.Fuentes.Juan@morganstanley.com +44 20 7425-2268

Key Takeaways RWE AG (RWEG.DE, RWE GY)

Utilities | Germany

We see a materially improved equity story, with more diversified earnings and

Stock Rating Overweight

growth drivers, from the addition of electricity networks and pivot back to Industry View Attractive

Germany. Price target €75.00

Shr price, close (Jul 22, 2026) €58.98

Including the Amprion deal in estimates increases RWE's 2025-31 EPS CAGR from Mkt cap, curr (mn) €43,872

12% to 14% net of new shares, with upside to guidance and consensus Fiscal Year Ending 12/25 12/26e 12/27e 12/28e

anticipated. EBITDA (€mn)** 5,087 6,140 7,311 7,615

EBIT (€mn)** 2,868 3,733 4,416 4,505

Amprion deal supports RWE's strategy to improve earnings quality with more EPS (€)** 2.25 2.78 3.43 3.31