Ørsted (Sell, TP: DKK474.00) - Valuation still stretched
Hampered by weak winds and low energy prices, Ørsted’s Q2 EBITDA missed our estimate by 12% and consensus by 14%. With the 2023 headline EBITDA guidance reiterated, we have made only small estimate revisions. We still consider the valuation stretched, with the stock trading at a one-year forward EV/EBITDA of 12.7x, 30% above the historical renewables average of 9.7x. It is also trading 68% above our estimated value of its existing business and visible growth, and we 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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.