This integrated energy company that generates and retails energy has advanced +6.7% so far in 2025, with much of the gains occurring this week. It appears ORG is set to receive a ~$4.8bn windfall in the form of unlisted Kracken shares. This is a big win for ORG and it’s understandable that the stock is pushing new highs.
It’s hard psychologically to chase stocks at such levels but ORG looks destined to rally further as CEO Frank Calabria, transitions the company from coal-based energy to renewable sources and battery storage. The company also upgraded underlying earnings (Ebitda) guidance for FY25 in May adding a degree of certainty moving forward. We regard ORG as a high quality, high-yielding (~5%) defensive, but it’s trading on relatively rich valuation following the Kracken news. However, we see little downside in Christmas.
- We can see ORG pushing above $12 through 2025, but the risk/reward is solid as opposed to exciting.
MM is cautiously bullish on ORG
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