RWE: Potential enlarged Amprion deal could add to RWE’s growth and value case – OW reiterated

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RWE: Potential enlarged Amprion deal could add to RWE’s growth and value case – OW reiterated

Barclays | RWE

given Amprion’s major funding needs). We also see potential for a transaction to be EPS-

accretive for RWE, depending on final terms, while recent market reaction to growth-led utility

M&A, including Engie’s acquisition of UK Power Networks, suggests investors can respond

favourably to regulated infrastructure deals with clear strategic and financial logic. Overall,

while no transaction has been confirmed, we would see a deal on these terms as a positive

development for RWE’s growth and value case.

We think investors are still underestimating RWE's potential for future growth and

transformation: Although RWE has outperformed the European utility sector SX6P by ~28%

over the last year, we continue to see meaningful upside potential to our PT and superior

catalysts in the next months (Das Beste vom Besten - PT and EPS Increased again – Reiterate

OW – 13 Mar 2026). We continue to see sector-leading EPS growth, with a ~12% CAGR (excl. book

gains) over 2026-31E, which is more than 50% higher than the sector average (and in line with

RWE’s guidance). We believe this is why RWE is trading at a favourable valuation with a 2031E PE

of ~12.3x (and even at our PT it would still be ~14.8x). Our PT is €66, which is around 4% above

the Bloomberg sell-side consensus average of €63.31. We attribute this difference to higher

assumed value creation from medium-term growth capex.

We view RWE as a key beneficiary from European DC expansion. Besides its exposure to

structurally higher power prices via its thermal fleet, RWE also sees increasing optionality in DC

land sales and project developments. In Nov '25, it realised a €225m book gain from selling a DC