Kepler starts NKT at 'hold' on limited near-term growth amid investments

NKT A/S

12/03/2025 09:49

** Kepler Cheuvreux initiates coverage of NKT NKT.CO with a "hold" rating, expecting investments to delay growth for the Danish provider of power cable solutions

** Kepler says investments in capacity expansion coupled with some working capital drag are set to keep NKT's FCF negative until 2027

** Growth is likely to be limited during 2025-2026, before accelerating over 2027-2028 when new capacity becomes available, it says

** It highlights NKT's ability to provide end-to-end solutions for large-scale power infrastructure projects, "strong" positioning in the core HVDC segment and solid presence in growing European market

** Out of 11 analysts covering NKT, four rate it "strong buy" or "buy", four "hold" and three "sell", according to LSEG data

 (Reporting by Vera Dvorakova)

 ((vera.dvorakova@thomsonreuters.com))