Ørsted's market value grows by over DKK 10bn after positive recommendation

Ørsted surged to the top of the Danish C25 index on Tuesday, when its stock won praise and a positive recommendation from Morgan Stanley.

According to Bloomberg News, analyst Rob Pulleyn sees an improvement in the balance between risk and return for the equity, which thus deserves extra attention from investors.

Ørsted’s share price rose 8.3% to DKK 299.30. This corresponds to a market value increase of DKK 9.6bn (EUR 1.28bn) to DKK 125.8bn.

The utility has been under pressure for some time due to its US offshore wind projects, which have led to major write-downs.

However, the risks from these projects are diminishing, according to the Morgan Stanley analyst, who also sees the sustainable sector approaching a recovery.

Furthermore, Ørsted shares are considered an obvious buy, as investors are currently looking for lagging equities in sectors that are on the rise.

Specifically, Rob Pulleyn sees attractive growth for the stock over the next 12-18 months as Ørsted further reduces the risks in its existing portfolio and balance sheet.

The recommendation was raised to “buy” from “hold” and the price target to DKK 360 from DKK 340.

English edit by Daniel Frank Christensen