RBC Capital upgrades Orsted stock rating on portfolio value

RBC Capital has upgraded Orsted A/S' stock rating to Outperform, citing significant value in the company's current state as it matures into an operating portfolio with strong free cash flow yield. The firm believes Orsted trades below its fundamental value, supported by InvestingPro data which indicates the stock is undervalued at a Fair Value of $8.66 compared to its current price of $7.01.

Orsted's portfolio maintains an average subsidy life of approximately 12 years, which the firm expects to trade higher than its current 8.5x enterprise value to EBITDA multiple.

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