Goldman Sachs analyst Mafalda Pombeiro maintained a Hold rating on Orsted yesterday and set a price target of DKK300.00.
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Mafalda Pombeiro’s rating is based on Orsted’s recent announcement of a significant rights issue, which is expected to be highly dilutive and could lead to a decrease in the share price. The lack of clarity regarding the terms of the rights issue until mid-September introduces a period of market uncertainty, which further complicates the investment outlook. However, once the rights issue is completed, it is anticipated to strengthen Orsted’s balance sheet, reducing the pressure to sell assets and potentially stabilizing the company’s financial position.
Despite these potential benefits, the current valuation metrics, such as the projected 2026 P/E ratio, suggest that the stock is not overvalued even after the rights issue. The price target of DKK 300 reflects a balanced view, considering both the fundamental valuation and potential M&A opportunities. Key risks include fluctuations in interest rates, project impairments, auction success rates, construction delays, power prices, and currency movements, which could impact the company’s performance and valuation.
DOGEF’s price has also changed moderately for the past six months – from $41.860 to $34.070, which is a -18.61% drop .