REE [BUY +42.9%] - Streamlining of asset portfolio to prompt re-rating - Update
  • 2020-11-20T20:42:05
  • Company Research
We raise our TP by 37% and reiterate our BUY rating for REE as we switch to use a sum-of-the-parts valuation (page 8), which we believe is better suited to capture the value of REE’s sizeable utility portfolio (ownership-adjusted 800 MW power capacity; 500,000 cbm/day water capacity), its expansion into renewable energy (wind and rooftop solar) and resilient office-leasing business. We raise our cumulative 2020F-2024F NPAT-MI by 6% mainly thanks to higher forecast earnings at the Upper Kon