RWE Kept at Overweight as Barclays Notes Larger-than-Expected FY26 Outlook Upgrade; Forecasts Up

12:31 PM EDT, 07/30/2026 (MT Newswires) -- Barclays on Wednesday reiterated its overweight rating on RWE (RWE.F), with an unchanged 68 euro price target, following the German energy group's larger-than-expected outlook upgrade for 2026 and robust preliminary first-half financial performance. The company's adjusted net income and adjusted EBITDA stood at 1.3 billion euros and 3 billion euros, respectively, both ahead of market expectations of 1 billion euros and 2.7 billion euros. Adjusted EPS came in at 1.77 euros, beating consensus by 28%. "While we and the market had anticipated a 2026 guidance upgrade, the scale of the increase is still a clear positive surprise. Even allowing for the around EUR100m positive one-off benefit that aided the Supply & Trading recovery in 2Q26, the breadth of the upgrade is important with offshore wind, flexible generation and other/consolidation all now having an improved 2026 guidance following the strong first-half performance. Most importantly, we still view the revised 2026 outlook as conservative," the research firm said, noting that RWE also raised its guidance for 2027. "RWE has already outturned ~59% of the adj. net income expected for the FY at the mid-point of the revised 2026 guidance in just the first half of the year, before the expected second-half contribution from the increased Amprion stake." Taking these into account, analysts increased their adjusted EPS forecast by 14% for 2026, while the estimates for 2027 and 2028 were lifted by 2% amid a positive medium-term view.