Ørsted (Sell, TP: DKK474.00) - All eyes on project profitability
We expect investors’ focus to remain on the challenging profitability outlook for awarded projects, most recently with the 1GW Baltica 3 also being postponed. The industry challenges have also put pressure on the funding of the company’s 50GW growth target with higher capex and potentially lower proceeds from farm-downs, but offset by higher earnings. We expect more clarity on this at the upcoming CMD. We still consider the valuation stretched, with the stock trading 78% above our estimated value for its existing business and visible growth, and reiterate our SELL and DKK474 target price.
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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