NKT Upgraded to Buy as Berenberg Expects Capacity Expansion to Drive Earnings Increase

12:14 PM EDT, 10/15/2026 (MT Newswires) -- Berenberg raised NKT's (NKT.CO) rating and price target amid an expected surge in earnings from 2027, thanks to the company's current capacity expansion. "We expect NKT's ongoing capacity expansion to drive a sharp increase in the company's earnings and free cash flow (FCF) from 2027, as investment normalises, incremental opex is absorbed, and higher-margin projects from the backlog are executed. This should support the reintroduction of a dividend and raise the prospect of further distributions or growth investments over the medium term," analysts said Thursday. "Now with a line of sight on the positive potential catalysts above (and scope for mid-term target upgrades), we upgrade our rating to Buy and raise our price target to DKK1,110 [from DKK825]." The research firm also lifted its operational EBITDA estimates for the power cable manufacturer from 2026 to 2028 by an average of 8%, while also raising its revenue and EPS projections for the three-year period. "We see potential for management to upgrade NKT's headline medium-term EBITDA targets when it issues the 2027 outlook, to avoid an implied deceleration in subsequent years," analysts added.