Verbund AG: A European Hydropower Champion Flying Under The Radar

Summary

• VERBUND's unique hydropower portfolio provides a durable competitive advantage, but regulatory headwinds and windfall taxes limit near-term profit upside.
• The company is accelerating its transition to a pan-European renewable player, with a €5.9 billion CapEx plan focused on wind, solar, and grid expansion.
• Despite earnings pressure from hedging, legacy contracts, and lower power prices, VERBUND maintains a fortress balance sheet and attractive dividend policy.
• Valuation remains reasonable, and as legacy contracts roll off, VERBUND is well positioned for moderate EPS growth and solid total returns over the next decade.

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VERBUND AG (OTCPK:OEZVF)(OTCPK:OEZVY) is an Austrian company that gets surprisingly little attention from investors, despite being one of the leading owners of hydropower assets in the world. Hydropower assets are special in that they are difficult to replicate, can provide

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