RWE Shares Gain Momentum on Analyst Confidence and Strategic Moves

Shares of German energy giant RWE AG (RWE PK) advanced approximately 1.1% on Wednesday, reaching €51.61. The positive movement was fueled by a significant upgrade from a prominent analyst and reinforced by a series of strategic operational updates from the company.

A key driver behind the share price strength was a bullish assessment from private bank Berenberg. The bank reaffirmed its "Buy" recommendation on RWE while substantially raising its price target from €42 to €58. Analysts cited the company's disciplined capital allocation and compelling growth outlook as primary reasons for the upgrade. They highlighted RWE's planned €35 billion investment program through 2030, which they believe could potentially double earnings per share to around €4 by the end of the decade.

Operational Progress Across the Business

Concurrent with the analyst action, RWE announced progress on several strategic fronts. In its Supply & Trading division, the company secured a binding 20-year agreement with Texas LNG Brownsville last week. The deal, set to commence in 2030, guarantees RWE one million tonnes of liquefied natural gas (LNG) annually. The agreement's finalization is contingent upon a final investment decision for the project, anticipated in early 2026.

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The company is also advancing its renewable energy portfolio. On January 19, RWE received environmental approval for its Pita Solar project in Chile. This hybrid facility will combine photovoltaic generation with battery storage, following the earlier approval of the "Los Durmientes" project slated for 2025. These developments underscore RWE's integrated strategy of pairing power generation with grid-stabilizing storage solutions.

Continued Commitment to Shareholder Returns

Further supporting shareholder value, RWE continues to execute its share buyback program. Between January 12 and 16, the company repurchased an additional 420,052 of its own shares at a weighted average price ranging from €48.11 to €51.31. Since the initiation of the program's third tranche in December 2025, RWE has now bought back more than 2.55 million shares.

Market attention is now expected to focus on the upcoming final investment decision for the Texas LNG project. With the stock's technical breakthrough above the €51 level and the new analyst target of €58, a constructive framework for the share price appears to be in place.