OX2

OX2 is a Swedish renewable energy developer with a strong presence in the wind, solar, and energy storage markets. The company’s integrated business model spans from early project development to construction and long-term asset management, allowing it to capture value throughout the project lifecycle and maintain strong profitability. With operations across 13 markets and a diversified 34 GW project portfolio, OX2 is well-positioned to benefit from structural tailwinds in the global energy transition.

The renewable energy sector is supported by ambitious EU climate targets and favorable legislative frameworks, especially within wind and solar energy. OX2 has an established position in onshore wind, with increasing exposure to offshore wind and photovoltaics, as well as emerging participation in energy storage. Recent geographic expansion into southern Europe and the acquisition of Australia’s Esco Pacific further strengthen its international footprint.

Key risks include local permitting challenges in Sweden, potential shifts in energy policy toward nuclear power, economic uncertainty, and trade measures on Chinese solar panels. Despite these risks, the company's historical margin resilience, project pipeline, and strong demand outlook support a positive investment case.

Valuation analysis suggests OX2 is currently undervalued. A base-case DCF yields a fair value of SEK 120.6/share, implying a 123% upside, while relative valuation metrics like EV/MW capacity and Price/Sales also support a bullish stance. Given the company's proven business model, strong growth prospects, and favorable industry dynamics, the recommendation is a Strong Buy.