Fortum Secures Long-Term Deal with Google for Loviisa Nuclear Power Plant

Fortum Oyj (OTCMKTS:FOJCF) has secured a long-term deal with Google for half of its Loviisa nuclear power plant's capacity, ensuring stable asset returns and visibility. This contract supports Fortum's asset optimization strategy.

The agreement grants 50% of Loviisa's capacity to Google until 2049, providing significant benefits to the company's asset base and yield. Despite these advantages, Fortum's lack of growth prospects constrains its capital appreciation potential beyond dividends.

Analysts have valued Fortum at €12.35 per share, justifying a 'Hold' rating. However, upside becomes unattractive above €16, €17 per share, suggesting that investors may consider rotating their portfolios at these levels.