The Orsted share price (CPH:ORSTED) recovered 5% from the record lows it reached on Tuesday after the US Government pulled out of a major offshore project. This was a shock to investors who had lost confidence in the leading renewable energy developer.
This sale has also raised concerns about the $9.4billion rights issue of the company and its position on the US renewables markets.
Orsted shares fell by more than 16 percent between August 25-26, reaching a new record low on Copenhagen’s exchange of 180 DKK.
This drop was the culmination of a month that saw the value of the stock plummet by 42%, and a total 51% over the last year.
Orsted lost more than 8 billion dollars in just two days. Its current market capitalization is now around 75,3 billion kroner (roughly $11.8 billion).
Why is Orsted stock falling so sharply?
The Trump Administration’s unexpected decision to stop Orsted’s $1,5 billion Revolution Wind Project off Rhode Island – citing concerns about national security – sparked the sale.
Orsted had a US expansion plan that was ambitious and the project’s completion and anticipated powering of 350,000 US households by spring 2026 shocked investors.
Orsted management wasted no time following the sale. Investors and advisors gathered in London, to soothe nerves and continue with Orsted’s 60 billion DKK (9.4 billion USD) capital raising despite the turbulence on the markets.
The backing of the Danish government who remains the largest shareholder helped to stabilize the situation and reinforce the importance Orsted has for Denmark’s Energy Strategy.
The company is not in a state of collapse, despite the news headlines.
Orsted’s core business performed well in the first half 2025.
What do analysts have to say?
Orsted’s forecast is viewed with caution by analysts, who are unsure but divided.
Analysts at Bernstein warned investors that the US Project Stoppage makes it harder to buy the stock, considering how heavily the company relies on its expansion in the US and the uncertainties surrounding the right issue.
Jefferies analysts said that this setback likely impacts both the pricing of the shares and the demand for them from investors.
UBS has, however, maintained its “Buy” call, but stressed the fact that the confidence will not return until the US regulatory environment is more clear.
Orsted may be liable for up to 120 billion DKK of penalties if the Revolution Wind project and Sunrise Wind project fail. This is a huge amount that will raise the stakes when it talks with US regulators.
A banking group, led by JPMorgan Chase & Morgan Stanley, is still backing the rights issue. They are betting on a successful outcome of negotiations.
The post Orsted shares rebound 5% after record lows – why analysts have divided opinions on the future may change as new information becomes available
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