Ørsted Stock Rallies on Analyst Upgrades and Major Wind Farm Launch

Shares of Danish offshore wind developer Ørsted (ORSTED) gained 2.1% to DKK 138.8 in recent trading, buoyed by a series of positive analyst actions and the successful launch of a major new wind farm in the German North Sea.

Analyst Upgrades Fuel Investor Optimism

The primary catalyst for the stock's move was an upgrade from RBC Capital, which raised its rating on Ørsted to 'Outperform' from 'Sector Perform'. The bank also significantly increased its price target to DKK 180 from DKK 120.

In its note, RBC argued that the stock is trading well below its intrinsic value, highlighting a compressed valuation multiple. The firm pointed out that Ørsted's portfolio carries an average subsidy life of roughly 12 years on a capacity-weighted basis, providing long-term revenue visibility.

The bullish sentiment was reinforced by a separate upgrade from Citi, which raised its rating to 'Buy' with a price target of DKK 165, according to the report.

Operational Milestone Boosts Confidence

Ad

Adding to the positive news, Ørsted and its partner Nuveen Infrastructure announced on August 31 that their Borkum Riffgrund 3 offshore wind farm has entered commercial operation. The 913-megawatt (MW) facility is a key part of Ørsted’s broader 8.1-gigawatt (GW) construction program, signaling steady execution on its development pipeline.

Market Performance in Context

Ørsted's gains stood in sharp contrast to the wider market, as U.S. indices like the S&P 500 and Nasdaq traded lower amid pressure from rising global interest rates. The stock was a top performer on its benchmark OMX Copenhagen 25 index.

Despite the recent rally, Ørsted's shares remain significantly below their 52-week high of DKK 209.7, leaving what some analysts see as room for further re-rating if the company continues to meet its operational and financial targets.