Index falls as earnings results weigh; pound above $1.33, Bodycote soars
On Monday, Citi analysts reaffirmed their Sell rating on Orsted (CSE:ORSTED:DC) (OTC: DOGEF (OTC:DOGEF)) shares, maintaining a price target of DKK211.00. The $17.34 billion market cap company has seen its stock decline over 21% in the past six months. This decision follows President Trump’s announcement late on Friday that tariffs on steel and aluminum imports will increase from 25% to 50%, effective from June 4th.
Orsted had previously recognized an impairment of DKK1.2 billion during its first quarter 2025 results on May 7th, due to the initial 25% tariff on steel and aluminum imports imposed by the U.S. government. These tariffs have impacted the company’s costs and contingencies for its Sunrise and Revolution Wind projects. According to InvestingPro data, the company is quickly burning through cash, with negative free cash flow in the last twelve months. With the new 50% tariff rate, Citi analysts anticipate a similar impairment might occur in Orsted’s second quarter.
The company is also facing additional uncertainties as negotiations on tariffs between the U.S. and the EU continue. Orsted has indicated that a 20% tariff could add approximately DKK0.6 billion in costs, an amount that has not yet been reflected in its financial statements.
Citi’s analysts highlighted that these tariff risks are detrimental to Orsted’s equity narrative. The firm’s concerns are particularly focused on the potential effects these tariffs could have on Orsted’s balance sheet. The analysts’ stance remains unchanged as they continue to advise investors to sell Orsted shares amidst the ongoing trade developments.
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