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RWE Stock: Why Its Transition To Sustainable Energy Production Long-Term Is Still Undervalued
Summary
- Following a strong profit and revenue growth in 2021, RWE’s outlook for 2022 is also optimistic.
- The company's valuation is cheap despite the surge and does not include the rapid shift towards green energy production.
- Current CEO, Dr. Markus Krebber, paved the company’s way to carbon neutrality in 2040 by a swap deal with E.ON in 2019, when he still was CFO.
- The crisis in Eastern Europe might be a catalyst to an even faster transition, which will create short- (by higher margins) and long-term (by the quicker switch to renewable energy sources) value for shareholders.
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Analyst’s Disclosure:I/we have a beneficial long position in the shares of RWEOY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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