Ørsted (Sell, TP: DKK474.00) - Market headwinds continue
We forecast Q2 EBITDA of DKK3.8bn, just below company-compiled consensus of DKK3.9bn. We see continued market headwinds, with competitors pulling out of projects on poor profitability following significant cost increases and regulators being unwilling to pay the higher cost of offshore wind. We still consider Ørsted’s valuation stretched, with the stock trading ~70% above our estimated value of 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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