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EON, RWE Reiterated Sell at UBS Ahead of Nuclear Tax Hearing 2013-11-19 09:24:07.334 GMT
By Nadine Skoczylas Nov. 19 (Bloomberg) -- EON, RWE current share prices not justified, UBS says in note, both stocks trading at premium to sector even excluding nuclear tax. * Reiterates sell ratings on both as finance court in Hamburg expected to hold hearing today on whether nuclear fuel tax case will be sent to European Court of Justice due to potential violation of EU law: UBS * Says decision may come as soon as today or next few days * Says ruling shouldn’t be seen as final outcome; in case EU court is called, actual tax payments would probably be put on hold * JPMorgan prefers EON over RWE based on its cheaper valuation, “more advanced” strategy and better earnings risk-reward, in note today * EON trading at EU14, near its 52-week high of EU14.92 reached on April 15; RWE trading at EU27.8, ~15% below its 52-week high of EU32.5 from Nov. 26, 2012 * NOTE: RWE, EON filed a first suit against Germany’s nuclear- fuel-rod tax in June 2011 with Munich fiscal court, Manager Magazin reported then
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To contact the reporter on this story: Nadine Skoczylas in Jerusalem at +972-2-640-1103 or nelsibai@bloomberg.net
To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net