Ørsted
Note: This is a daily stock update and the information stands true as of 20/05/25, 09:00 CET.
Company Update:
Expert Opinion:
This is a clear positive on the short term for Ørsted and our expert expects a potentially strong positive reaction on the name. Yet, he believes that this doesn’t solve at all the largest issue at hand which is the long term future of that business. The acceptability of those projects (at least onshore), is on the decline as seen in the US. Furthermore the recent blackout in Spain is suspected to be at least partially caused by renewable sources (even though the investigation is still ongoing). In all, besides the short term bounce, he wouldn’t invest in an industry that is potentially facing structural decline. He is therefore much more cautious than our analysts on both Ørsted and Vestas.
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Company Update:
The Trump administration has lifted the ban that was blocking the construction of the Empire Wind offshore wind project by Norwegian company Equinor off the coast of New York. This ban, enacted at the end of April, led to a 16% drop in the share price over the course of a month, falling from DKK 290 to DKK 245.
The market then began to fear the cancellation of Ørsted’s two ongoing projects in the US: Revolution Wind and Sunrise Wind. Their cancellation could have led to an impairment of DKK 15–20 billion as well as cash cancellations of a similar magnitude, the two Ørsted projects being at a much more advanced stage of development.
Uncertainty remains with the Trump administration, and it is premature to say whether this marks the end of Ørsted’s US nightmare. Nevertheless, we expect a positive impact with a rebound toward DKK 290 during the session or in the coming days.
The X read is equally positive for Equinor (Add) and for Vestas (Buy).
Expert Opinion:
This is a clear positive on the short term for Ørsted and our expert expects a potentially strong positive reaction on the name. Yet, he believes that this doesn’t solve at all the largest issue at hand which is the long term future of that business. The acceptability of those projects (at least onshore), is on the decline as seen in the US. Furthermore the recent blackout in Spain is suspected to be at least partially caused by renewable sources (even though the investigation is still ongoing). In all, besides the short term bounce, he wouldn’t invest in an industry that is potentially facing structural decline. He is therefore much more cautious than our analysts on both Ørsted and Vestas.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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Alphavalue Morning Market Tip
Q3 results were in line – guidance confirmed but marginally negative news.