Morgan Stanley | The team reviews the offshore wind segment for which they expect we will see inflection points in 2024. The team believes the problems seen in 2023 were not structural, so they expect the auctions planned for 2024 (57GW) could mark cycle highs in IRR>WACC spread… and become positive catalysts for their winners.
The supply chain environment has also improved, with an increase in unit capex combined with competitive cost of energy (LCOE) levels. The team sees a buying opportunity in sector developers such as Orsted, RWE, SSE, where they do not see their future growth capacity reflected in their valuation.
However, they highlight that these factors should also favor Iberdrola (IBE).