Orsted: The ADR Disconnect 'HOLD'/Rotate Rating Was Correct (Rating Upgrade)
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Wolf ReportInvesting Group LeaderFollow5ShareSavePlay(14min)CommentsSummaryØrsted A/S is rated a speculative 'Buy' after a massive rights issue and 70% ADR decline, with risk/reward now more balanced.Recent capital improvements, including a 50% Hornsea 3 divestment and rights issue, enhance liquidity but come at the cost of shareholder dilution and future returns.3Q25 results disappointed: EBITDA fell over 20% YoY, leverage remains high, and the company is still exposed to US regulatory and interest rate risks.At ~135 DKK, DNNGY trades at 7–8x EV/EBITDA with visible growth, but upside is highly contingent on offshore wind market recovery and execution through 2030. Ole Schwander/iStock Editorial via Getty Images In my last article on Ørsted A/S (DNNGY), I gave the company a "HOLD" and rotation rating for the ADR due to a valuation discrepancy related to both volume and other trends, becauseThis article was written byWolf Report34.51K FollowersFollowWolf Report is a senior analyst and private portfolio manager with over 10 years of generating value ideas in European and North American markets.He covers the markets of Scandinavia, Germany, France, UK, Italy, Spain, Portugal and Eastern Europe in search of reasonably valued stock ideas.Analyst’s Disclosure:I/we have a beneficial long position in the shares of DNNGY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.