Goldman Sachs upgrades Nexans to Buy on stronger HVDC market

Published 11/07/2025, 13:52
© Reuters.

Investing.com -- Goldman Sachs upgraded French cable maker Nexans (EPA:NEXS) to Buy from Neutral saying a tighter-than-expected supply-demand backdrop for high-voltage direct current (HVDC) systems that could support long-term growth.

The bank raised its price target on Nexans shares to €125, implying about 15% upside from current levels.

Goldman expects the HVDC market to remain undersupplied beyond 2027, driven by accelerating demand for grid expansion projects across Europe.

Its revised forecasts, based on the EU’s 2024 Ten-Year Network Development Plan, show HVDC demand rising at a 10% compound annual rate through 2032—outpacing supply growth of just 6%.

Analysts now see demand exceeding supply by at least 20% from 2027 onwards, with supply additions from new entrants have been slower than initially expected.

Nexans, which recently reported a rebound in its order backlog, is seen as a key beneficiary of the supply-constrained market in the medium term, especially given improving utilization and project mix after 2026.

Shares in Nexans are up around 25% year-to-date. The company has positioned itself as a major supplier for energy transition infrastructure, including offshore wind and interconnector projects, amid a broader push to modernize Europe’s power grid.

The HVDC segment has attracted rising investor interest amid growing policy support for grid resilience and decarbonization. Rivals such as Prysmian (BIT:PRY) and NKT have also flagged strong order pipelines and capacity expansions, though Goldman highlighted delays among newer players.

Nexans is scheduled to report first-half results later this month.

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