Division RWE broke resistance of € 41.70 and is now trading at its highest level since May 2011. Since the beginning of the year, the price has risen by almost 19%. The catalyst for this upward move has been the renewable energy business. Profit before tax and interest in the offshore wind energy sector increased by 41%. compared to the same quarter last year thanks to good wind conditions, and the onshore and solar sectors managed to break even. In the entire group, the net result more than doubled. Despite a good start to the year, management is sticking to the goals it set for February. Market participants are speculating on more.
The transformation from nuclear and coal to renewable energy is in full swing. While nuclear and coal power plants are being phased out, the company’s main focus is on offshore wind farms, onshore wind and solar farms, hydrogen projects, hydropower, bioenergy and battery storage. In 2016, nuclear and coal power plants accounted for around 57% of the total. total energy production of 42 GW. This percentage is expected to shrink to 7.4% by 2030. Until then, RWE plans to invest around EUR 30 billion in the development of renewable energy. This should almost double the installed power output to 50 GW. By then, approximately 45 percent are expected to be invested in the further expansion of offshore wind farms and onshore / solar parks. Capacity expansion by 2027 is already planned.
A large proportion of analysts see an article about recovery in the medium term. The federal government and many other state governments are now stepping on gas to reduce dependence on fossil fuels such as oil and gas. RWE is one of the largest producers of renewable energy. The Essen-based company generates most of its operations in Germany. At the same time, the Group is also strongly positioned in the rest of Europe and the USA. In the medium term, 50 to 60 percent of profits are expected to be paid as dividends and at least EUR 0.90 per share. Despite the good medium-term outlook, bad news from the company or a weak market could put pressure on stocks.
Chart technical perspective: RWE
Resistance levels: EUR 45.00 / 46.25
Support tokens: EUR 37.15 / 38.80 / 41.70
RWE shares create a long-term growth trend. After testing the resistance level at EUR 41.70 in April this year. the share initially fell to EUR 38.80. After hitting this level twice, RWE action completed the W formation and broke above the resistance level of EUR 41.70. The next obstacles are now EUR 45 (trend channel upper barrier) and EUR 46.25 (break line 138.2%). The shares are in a wide support zone between EUR 38.80 and EUR 41.70.
RWE to EUR; Daily chart (1 candle = 1 day)
Period of observation: 02/05/2021 – 05/20/2022. Historical observations are not reliable indicators of future events Source: tradingdesk.onemarkets.de
RWE in EUR; Weekly chart (1 candle = 1 week)
Observation period: May 21, 2009 – May 20, 2022. Historical observations are not reliable indicators of future events. Source: onemarkets.tradingdesk.de
Inverted bonds convertible into RWE shares
|Essential||WKN||Issue price in EUR||barrier||interest||date of the last valuation|
|RWE||HVB6R5 *||100% **||80% ***||5.15%||07/06/2023|
* In subscription until 09/06/2022 (subject to early closure); ** nominal value; *** x Reference Price on the Observation Starting Date Source: HypoVereinsbank onemarkets; Status: May 20, 2022; 11:30 am
Discount call warrants on RWE shares
|Essential||WKN||Selling price in euros||basic price in EUR||Cap level (upper course limit) in EUR||final Valuation day|
* maximum repayment amount of EUR 3; Source: HypoVereinsbank onemarkets; Status: 20.05.2022; 11:30 am
Put discount warrants for RWE shares
|Essential||WKN||Selling price in euros||basic price in EUR||Restriction level (lower price limit) in EUR||final Valuation day|
* Max. The repayment amount is 3 euros; ** maximum repayment amount 4 euros; Source: HypoVereinsbank onemarkets; Status: 20/05/2022 11:30
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RWE article – the action is full of energy! it first appeared on the onemarkets blog (HypoVereinsbank – UniCredit Bank AG).
Author: Richard Pathenhauer