RWE Earnings: Topped Consensus Thanks to the Trading Business; 2023 Guidance Confirmed; Shares Cheap

We maintain our EUR 55 fair value estimate after no-moat RWE released 9-month results above company-compiled consensus thanks to yet another strong performance of the trading business and confirmed its 2023 guidance. The firm will update its medium-term guidance and investment plan at its capital markets day on Nov. 28. We would welcome an increase in shareholder remuneration. In any case, we see the shares as materially undervalued after an excessive read-across from Orsted's U.S. issues.