Orsted stock on the rise after ABG Sundal Collier's rating upgrade

Investing.com -- Shares of offshore wind developer Orsted (CSE:ORSTED ) experienced a boost of up to 4.7% following an upgrade in recommendation to buy from hold by ABG Sundal Collier. The upgrade was due to an increasingly positive risk-reward outlook on the stock.

Analyst Daniel Haugland, who adjusted the price target to 400 kroner from the previous 418 kroner, indicating a 33% increase from the last price, has projected that shares could potentially exceed DKK430 over the next 12 to 18 months.

This prediction is based on the Ebitda growth in Orsted's current pipeline and the expected multiples for European utilities in 2026.

Despite the potential for the US offshore wind sector to be delayed for the next four years, Haugland argues that the net asset value of Orsted should experience minimal impact. Changes to tariff levels driven by political factors could present a risk to earnings, however, it is unlikely to affect existing assets.

Over the past year, Orsted's shares have decreased by over 16%.

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Source: Investing.com