Berenberg ups NKT on upcoming medium-term catalysts

NKT A/S

15/10/2026 09:51

** Berenberg upgrades Danish power cable maker NKT NKT.CO to "buy" from "hold" and raises its PT by 35% to DKK 1,110  ($166.64), as it expects capacity expansion to drive a sharp increase in earnings and free cash flow from 2027
** As investments normalise, incremental operational expenses are absorbed, and the execution of higher-margin projects from the backlog should support reintroduction of a dividend, potentially as early as 2028, the broker says
** A recent factory tour highlighted the "deep moat that NKT enjoys as a turnkey subsea cable systems provider", pointing to a strong competitive advantage, Berenberg notes
** The brokerage sees potential for management to upgrade medium-term earnings targets, estimating 2030 operational earnings at €995 million ($1.1 billion), to avoid an implied slowdown
** Eight out of 14 analysts covering the stock rate it "strong buy" or "buy," four "hold" and two "sell" - LSEG data
     
($1 = 0.8913 euros)
($1 = 6.6610 Danish crowns)

 (Reporting by Vera Dvorakova)
 ((vera.dvorakova@thomsonreuters.com))