Update shared on 28 Nov 2025
Fair value Increased 1.80%Analysts have modestly increased their price target for Vestas Wind Systems to DKK 156.26 from DKK 153.50. They cite slight improvements in profit margin forecasts and a lower discount rate as supporting factors.
Analyst Commentary
Recent updates from major financial institutions have provided a mixed outlook on Vestas Wind Systems, with both bullish and cautious perspectives reflected in revised price targets and future expectations.
Bullish Takeaways
- Bullish analysts have increased their price targets, citing improved earnings visibility and profit margin expansion.
- There is a continued positive stance on Vestas Wind Systems' positioning within the renewable energy sector, with expectations for long-term growth in global wind installations.
- Improved operational execution and disciplined cost management are contributing to greater confidence in the company's ability to reach profitability targets.
- Lower discount rates are viewed as supportive of higher equity valuations, particularly for companies like Vestas with strong long-term prospects.
Bearish Takeaways
- Bearish analysts have adjusted their price targets downward, reflecting concerns about near-term margin pressure and market volatility.
- Execution risks remain, with project delays or higher input costs potentially impacting earnings momentum.
- There is caution regarding the persistence of supply chain challenges, which could affect profitability in upcoming quarters.
- Some analysts have adopted a neutral stance on the stock, noting limited upside potential given current valuation levels after the recent rally.
What's in the News
- Vestas announced a new share buyback program to repurchase up to 18 million shares (1.8% of issued share capital) for DKK 1,120 million between November 6 and December 17, 2025, as approved at the April 2025 Annual General Meeting (Key Developments).
- The company updated 2025 earnings guidance, narrowing expected revenue to between EUR 18.5 and 19.5 billion, reflecting refined short-term outlooks (Key Developments).
- Vestas secured multiple recent wind turbine orders in key markets including:
- 347 MW in the USA and Canada (Key Developments)
- Several new projects in Germany totaling over 600 MW as part of its third quarter intake (Key Developments)
- Additional orders in Italy (94 MW), the USA (320 MW), Argentina (217 MW), and the United Kingdom (63 MW) (Key Developments)
- Awarded long-term service agreements with new and existing clients, strengthening recurring revenue streams (Key Developments).
Valuation Changes
- Fair Value: Increased modestly from DKK 153.50 to DKK 156.26, reflecting slight adjustments in analyst projections.
- Discount Rate: Decreased marginally from 7.48% to 7.43%, which can support higher valuation levels.
- Revenue Growth: Remained steady at approximately 7.8%, indicating stable expectations for top-line expansion.
- Net Profit Margin: Improved gradually from 5.72% to 5.88%, suggesting positive momentum in profitability forecasts.
- Future P/E: Decreased narrowly from 18.34x to 18.33x, signaling minimal change in forward earnings multiples.
Disclaimer
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