DNNGY - Orsted Stock: Problematic Case, Undeniably Appealing Valuation

2025-06-03 10:19:10 ET

Summary

• Ørsted A/S remains a global wind leader but faces multi-year setbacks, project cancellations, and rising debt, making its recovery highly speculative.
• The company’s failed U.S. expansion, ongoing impairments, and Hornsea 4 cancellation highlight sector-wide challenges and erode its first-mover advantage.
• Despite record-low valuation and some upside potential, I see DNNGY stock as a speculative Buy only below 300 DKK, with a fair value of 440 DKK.
• Given the risks, I prefer better-diversified peers like SSE or Iberdrola for more stable, less speculative renewable energy exposure.

Dear readers/followers,

Ever since the far deeper than expected-decline in the renewables, and specifically wind power industry which wreaked havoc with projects and project returns for some of the major manufacturers, I've stayed away from the entire sector, barring secondary exposures through oil majors such as Equinor ( EQNR ), which through its assets holds significant renewable interests as well....

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