Ørsted’s major asset sales slash debt, leading Barclays to upgrade its rating. Analysts forecast rising EBITDA as the firm focuses on core offshore wind projects.

A significant financial transformation is underway at Danish renewable energy giant Ørsted. The company’s aggressive divestment strategy has successfully reshaped its balance sheet, drawing positive reactions from market analysts who are now upgrading their outlook on the firm.

A Shift in Analyst Sentiment

The improved financial picture has prompted several institutions to revise their stance on Ørsted’s equity. On April 1, Barclays upgraded the company from “Underweight” to “Equal Weight,” simultaneously raising its price target from 117 to 160 Danish kroner. The bank cited the strengthened balance sheet and a sharpened focus on high-return projects as key reasons for the change. This move follows earlier “Buy” recommendations from analysts at Bank of America and Kepler Cheuvreux.

Financial projections reflect growing confidence. Analysts anticipate an EBITDA of 29 billion kroner for the current year, with an increase to 33.77 billion kroner expected by 2027. The current price/earnings-to-growth (PEG) ratio of 0.46 suggests the market may not yet have fully priced in the company’s growth potential.

Unlocking Capital Through Major Divestments

The cornerstone of this financial restructuring has been a series of high-value asset sales. Ørsted divested a 50% stake in the Hornsea 3 offshore wind farm for approximately 39 billion Danish kroner. In a separate transaction, the company sold its European onshore business for about 1.7 billion US dollars.

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Combined, these deals generated roughly 46 billion kronen in proceeds, substantially exceeding the company’s own target of 35 billion kroner. This influx of capital has been directly deployed to slash debt.

The Direct Impact on Net Debt

The proceeds from these strategic sales are set to dramatically reduce Ørsted’s leverage. According to a forecast from Barclays, the company’s net debt is projected to fall from 18.98 billion kroner in 2025 to just 3.99 billion kroner in 2026. This substantial deleveraging provides a more stable foundation for future operations and investment.

Positive Developments in the US Market

Further supporting the optimistic outlook are favorable legal rulings for Ørsted’s US portfolio. In early 2026, judicial decisions were granted for the Sunrise Wind and Revolution Wind projects, which successfully blocked previous suspension orders. The Revolution Wind facility is already operational and delivering power to the grid, providing a near-term revenue stream.

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This combination of strategic financial management and project execution is reshaping the narrative around Ørsted, as it transitions to a leaner corporate structure focused on its core offshore wind operations.

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