E.ON "buy"

01/02/07 - Dexia Securities

LONDON, January 1 (newratings.com) - Analyst Steven Deproost of Dexia Securities maintains his "buy" rating on E.ON AG (EOA). The target price is set to €115.

In a research note published this morning, the analyst mentions that the company has reduced its bid for Endesa from €35 per share to €34.5 per share, following Endesa’s announcement of an interim dividend of €0.50. Among the Spanish utilities, Endesa would be the most positively affected in the sector by the announcement of a 4.3% increase in Spanish average energy tariff and this is expected to keep its share price marginally ahead of E.ON’s current bid price, the analyst says.