Ørsted (Hold, TP: DKK430.00) - Back to reality
We believe the latest impairments in the US were another reality check for investors about the profitability of growth in the struggling offshore wind market. Assigning a lower value to growth beyond awarded projects and the US portfolio, we have cut our target price to DKK430 (474). We have upgraded to HOLD (SELL) after the 25% sell-off yesterday, but highlight that the stock is still trading 27% above our valuation of the company’s existing business and visible growth. To maintain a premium to the value of its existing business, we believe it will be key for management to execute solidly ahead.
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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