Kepler Cheuvreux believes that the market holds exaggerated expectations for Fortum, particularly regarding data centers, demand, and the electricity market. As a result, the firm considers Fortum's recent Capital Markets Day to have been a disappointment, despite the company's efforts. The target price has been raised to EUR12.5 (from EUR12), while the "reduce" recommendation is reiterated.
The bank argues that, as a pure-play power producer, Fortum is entirely dependent on Nordic electricity prices, which are expected to come under pressure rather than rise in the coming years. This, Kepler Cheuvreux says, makes the company's revenue targets difficult to achieve.
