Ørsted (Hold, TP: DKK360.00) - Growth target revision likely
With no recent project awards and several awarded projects at risk, we believe Ørsted will need to lower its 50GW growth target. With limited growth priced in, we believe a message of capital discipline would be received well by the capital markets, although we see the potential for some negative consensus revisions. We reiterate our HOLD, but have cut our target price to DKK360 (430), as we no longer include growth beyond awarded projects given the challenging market environment and weak prospects for profitable growth. We believe an industry reset would be needed for profitable growth to be priced in again.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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