Orsted stock rating cut at Berenberg, price target to DKK250

Published 15/05/2025, 09:36
Orsted stock rating cut at Berenberg, price target to DKK250

On Thursday, Berenberg analysts downgraded Orsted A/S (CSE:ORSTED:DC) (OTC:DNNGY) stock from Buy to Hold and significantly reduced the price target to DKK250 from the previous DKK390. The downgrade was prompted by increased risks in the company’s US offshore operations, particularly after a halt order was issued to Equinor’s Empire Wind project. This development has cast uncertainty over the delivery of Orsted’s Revolution Wind and Sunrise Wind projects in the United States.

Berenberg’s stance reflects concerns over the potential impact of proposed tax changes on Orsted’s growth prospects in the US onshore market. In addition to the challenges in the US, the unexpected cancellation of the Hornsea 4 project in the UK, which was set to generate 2.4GW, and the uncertainty surrounding the Baltica 3 project in Poland, at 1.2GW, are seen as factors that could hinder Orsted’s medium-term growth trajectory.

The analysts at Berenberg have adjusted the price target for Orsted, indicating that the new target no longer accounts for projects that have not yet reached a final investment decision (FID). The revised price target of DKK250 is positioned slightly below the value of Orsted’s existing and under-construction assets, signaling a cautious approach to the company’s future project pipeline and potential earnings.

The downgrade comes amid a broader context of regulatory and project-specific setbacks for Orsted, a leading player in the renewable energy sector. The company’s stock rating shift to Hold suggests that Berenberg analysts advise a more neutral stance on the stock, awaiting further clarity on the company’s ability to navigate the highlighted challenges.

Orsted, which has been a prominent developer in the offshore wind sector, will now be under scrutiny as investors and market watchers look to see how the company addresses the raised concerns and adapts its strategies to maintain its growth momentum in the face of these emerging obstacles.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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