Ørsted Rating, Price Target Up as RBC Notes 'Undervalued' Core Assets, Balance Sheet Optionality

05:33 AM EDT, 09/02/2026 (MT Newswires) -- RBC Capital Markets upgraded its rating and price target for Ørsted (ORSTED.CO), saying the market is "undervaluing" the Danish wind power company's core portfolio, with balance sheet strength offering optionality for growth and shareholder returns. "We believe Ørsted trades below its fundamental value and see growth as a free option. The portfolio maintains an average subsidy life (capacity weighted) of ~12 years and we believe this should trade higher than the current ~8.5x 2026E EV/EBITDA. Furthermore, strong [free cash flow] yields averaging ~11% 2028-2035E adds additional optionality on the balance sheet with Ørsted moving to a net cash position on our numbers by 2030E," according to a Tuesday note. "Government commitment to offshore wind in key geographies remains intact and whilst we acknowledge pipeline visibility remains more limited, we expect a strong pricing at AR8 to provide a look through to Ørsted's largest growth asset Hornsea 4 and await further clarity in other key geographies. Furthermore, we give no credit for further growth in our numbers and believe that a strong balance sheet position is not being given any credit in the market," analysts added. Against this backdrop, RBC lifted the stock's rating to outperform from sector perform and raised its price target to 180 Danish kroner from 120 kroner. The research firm also boosted its adjusted EBITDA and adjusted basic EPS projections for full-year 2026 and 2027, while lowering its dividend per share estimates for the same two years.