01:46 AM EDT, 10/28/2026 (MT Newswires) -- BofA Global Research sees new offshore wind capacity alongside "strong" trading and flexible generation as key drivers of RWE's (RWE.F) full-year 2026 earnings upside ahead of the German energy group's third-quarter results on Nov. 11. In an earnings preview note, the research firm models a 25% year-over-year jump in underlying EBITDA and expects unhedged fourth-quarter offshore output to boost 2026 EBITDA by 100 million euros. While a 2026 outlook raise appears unlikely at the third-quarter report, analysts anticipate that management will nudge expectations toward the top end of the company's target range. "We see three drivers of FY26 consensus upside. 1) Three new offshore windfarms are ramping ahead of commissioning (Sofia, Nordseecluster A, Thor). We expect 1.7TWh unhedged Q4 output. With German and UK baseload at EUR170-190/MWh versus RWE's cEUR110/MWh guidance assumption, we estimate these volumes add cEUR100m FY26E EBITDA. 2) RWE achieved the EUR300m midpoint of Supply & Trading FY guidance in mid-August, implying EUR166m EBITDA in 1.5 months. Given the strong gas price moves since, we expect the division above the top end of its EUR100-500m EBITDA guidance. 3) Despite lower Q3 running hours, we expect flexgen to have captured higher margins in Q3," the note said. Within this context, the research firm raised its 2026 EPS estimate by 3%, putting its forecast 8% above consensus, and now projects full-year net income of 2.48 billion euros, above the top end of RWE's 1.95 billion euros to 2.45 billion euros guidance range. BofA maintained its buy rating on the stock, with a price objective of 76 euros, noting the recent pullback was due to the latest artificial intelligence-related unwind while reiterating that the company's fundamentals "remain strong."

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