Ørsted (Hold, TP: DKK405.00) - Anticipation for 2024 tender activity
With record-high 2024 tender activity (up to 40GW of offshore wind capacity set to be awarded by year-end), the supply/demand balance for new capacity is starting to look more promising. With limited growth priced into Ørsted’s share price, we believe any awards at accretive offtake prices could spark capital markets’ belief in renewed profitable growth and spark investor interest. On the other hand, we expect some of the tenders to remain competitive, and the high auctioned capacity could put further pressure on the value chain and result in continued bottlenecks in the years ahead. We reiterate our HOLD, but have raised our target price to DKK405 (375).
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