Jefferies reiterates its "buy" rating on the stock and raises its target price for it to €63 (from €61).

Jefferies believes that the recent weakness in RWE's share price represents a good buy opportunity.

RWE's share price has retreated about 10% since late April, which, the analyst says provides an attractive entry point.

The analyst anticipates significant catalysts over the next six months that are likely to improve visibility on growth and profitability.

"The stock remains exposed to several key structural themes underpinning the energy sector. These include the resumption of offshore wind tenders in Europe, with approximately 30 GW expected between 2026 and 2027, where RWE is well-positioned in key markets such as the UK and Germany," the broker states.

Jefferies also believes that the geopolitical context in the Middle East is accelerating Europe's electrification and decarbonization, thereby creating new investment opportunities in RWE's core markets.

"The company also benefits from a strong presence in the United States, where approximately 30% of its EBITDA and 35% of its capital expenditure are linked to a structurally growing energy market, thus bolstering its medium-term growth prospects," the broker adds.

Jefferies further notes that several identifiable catalysts could support stock market performance. "A key element lies in the opportunity for RWE to develop gas-fired power generation capacity in Germany, with tenders for approximately 9 GW scheduled for the second half of 2026."