China’s Xi speaks with Trump by phone, discusses Taiwan and bilateral ties
Investing.com - Kepler Cheuvreux downgraded NKT A/S (CSE:NKT) from Hold to Reduce on Thursday, while simultaneously raising its price target to DKK710.00 from DKK595.00.
The research firm expressed caution about NKT’s long-term margin sustainability despite acknowledging the cable manufacturer’s ambitious 2030 EBITDA target of more than DKK900 million, which implies approximately 23% EBITDA margin overall and 25-28% in its Transmission segment.
Kepler Cheuvreux warned investors against using 2030 margins as terminal-year reference points, noting that while HVDC Asian competition isn’t a major concern, transmission system operator (TSO) capital expenditure is expected to plateau between 2030-2035.
The analyst firm further explained that increased industry capacity will likely lead to margin normalization in the sector, which could impact NKT’s long-term profitability despite current positive indicators.
The downgrade comes as Kepler Cheuvreux views NKT’s current stock price as trading at a significant premium compared to both its base case discounted cash flow valuation of DKK710 and substantially above industry peers Prysmian and Nexans.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.