Update shared on 04 Dec 2025
Fair value Increased 2.16%Analysts have modestly raised their price target on RWE to approximately €48 from about €47, citing slightly improved profit margin expectations and a marginally higher future P/E multiple, even though growth and discount rate assumptions remain broadly unchanged.
What's in the News
- RWE completed construction of its first project in Louisiana, the 100 MW Lafitte Solar plant, which is expected to be fully online by year end and supported by a long term PPA with Meta that includes associated environmental benefits and RECs (Key Developments).
- The Lafitte Solar project is projected to generate about €32 million in regional tax revenue over its lifetime and supported more than 150 full time construction jobs at peak, boosting local services and businesses in Ouachita Parish (Key Developments).
- RWE and construction partner McCarthy are funding community initiatives around Lafitte Solar, including school donations, a new playground at Tanglewood Community Park, and one of the largest holiday food donations received by the Food Bank of Northeast Louisiana (Key Developments).
- The Lafitte Solar site incorporates agrivoltaics, using a flock of over 600 sheep to manage vegetation and promote biodiversity, illustrating how renewable energy can coexist with agriculture and support local farmers (Key Developments).
- ITM Power signed a capacity reservation agreement with RWE for 150 MW of NEPTUNE V green hydrogen units, reinforcing RWE's role in large scale hydrogen projects following its 4 MW pilot plant and 200 MW GetH2 Nukleus electrolyser order in Lingen, Germany (Key Developments).
Valuation Changes
- Fair Value: Raised slightly from approximately €47.16 to about €48.18 per share, reflecting a modest uplift in the underlying valuation.
- Discount Rate: Reduced marginally from roughly 6.48% to 6.48%, implying a slightly lower perceived risk profile in the cash flow discounting.
- Revenue Growth: Trimmed very slightly from about 6.72% to around 6.71% per year, signaling a near-unchanged top line growth outlook.
- Net Profit Margin: Increased modestly from roughly 7.78% to about 7.78%, indicating a small improvement in expected profitability.
- Future P/E: Edged up from around 18.9x to about 19.3x, pointing to a slightly higher valuation multiple on forward earnings.
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