Deutsche Bank (ETR:DBKGn) has adjusted its price target on shares of Orsted A/S (CSE:ORSTED: DC) (OTC: DNNGY (OTC:DNNGY)) to DKK470.00 from the previous DKK480.00 as the firm sustained its Buy rating on the stock. This revision follows the company's latest financial results and takes into account new impairments to the Revolution Wind project and updated guidance.
The adjustment in price target reflects a decrease in the 2024 earnings forecast by approximately 25%. The significant reduction is attributed to the inclusion of 3.9 billion DKK in impairment losses that were unexpectedly reported during the first half of 2024 results. These losses were not anticipated by the market.
Despite the reduction in earnings estimates, Deutsche Bank's outlook remains positive due to recent movements in the bond market. The yield on 10-year U.S. government debt has decreased by 70 basis points since the beginning of the second half of the year. The bank anticipates a potential impairment reversal of 1 billion DKK in the third quarter as a result of this decline.
In the broader picture, Deutsche Bank still expects Orsted's EBITDA, excluding farm-downs and cancellation fees, to hit 25 billion DKK for the full year. This projection stays within the company's own guidance range of 23 to 26 billion DKK.
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