Report
Tancrede Fulop
EUR 101.80 For Business Accounts Only

Initiating Coverage of Innogy, Which We See as Slightly Overvalued; We Prefer RWE

We are transferring coverage of RWE with a EUR 19 per share fair value estimate, down from EUR 21, but still undervalued as of late January. We reaffirm our no-moat, stable trend ratings. We are also initiating coverage of RWE's subsidiary Innogy, also with no-moat, stable trend ratings and a fair value estimate of EUR 31 per share, slightly above the market price.
The key to our no-moat ratings is the German networks' poor allowed returns. Innogy’s retail activities are no-moat by nature, as we...
Underlying
Innogy SE

Innogy SE is a Germany-based company, which is primarily involved in the utilities industry. The Company operates as a provider of electricity and natural gas. The Company's operations are divided into three segments, namely Renewables, Grid and Infrastructure and Retail. The Company operates plants for electricity generation and production from renewable energy sources. The Company is active in Germany, the Netherlands, Austria, Poland, Romania, Croatia, Slovakia, Slovenia, the United Kingdom, among others.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Tancrede Fulop

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