Update shared on06 Sep 2025
Fair value Increased 0.50%Analysts have raised their price target for Vestas Wind Systems, citing accelerating global wind installations, stronger recent operating performance, and improving industry fundamentals, with the consensus fair value now modestly higher at DKK140.61.
Analyst Commentary
- Bullish analysts expect a significant acceleration in wind installations outside China, projecting double-digit growth rates through 2030.
- Upward revisions reflect the belief that negative earnings revisions and share multiple compression have largely played out, suggesting improved downside protection.
- Forecast models have been updated following better-than-expected operating performance and encouraging Q2 results.
- Price target increases are partially attributed to improving industry fundamentals and a more favorable regulatory environment for renewable energy.
- Bearish analysts remain cautious, reflected in Hold or Equal Weight ratings, citing lingering valuation concerns and the need for further evidence of sustained margin improvement.
What's in the News
- Vestas secured multiple significant orders globally, including a 950 MW order in the USA, 527 MW and 40 MW projects in North America and Poland, 269 MW and 96 MW projects in Romania, and 94 MW and 74 MW projects in Germany.
- The company reaffirmed guidance for 2025, with expected revenue between EUR 18 billion and EUR 20 billion and a projected EBIT margin before special items of 4%-7%.
- Vestas won a 274 MW contract for the Madawaska wind project in Québec with EDF Power Solutions, reinforcing its leadership in Canada with over 5 GW installed base.
- Major project wins in Eastern Europe, including Vifor phase II (269 MW, part of Romania’s largest wind farm at 461 MW total) and 143 MW across three Romanian wind farms, have strengthened Vestas' position in the region.
- The company continues to expand its +7 MW turbine portfolio in Germany, surpassing 1 GW firm order intake, highlighted by a 115 MW order for V172-7.2 MW turbines from ENERTRAG.
Valuation Changes
Summary of Valuation Changes for Vestas Wind Systems
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from DKK139.91 to DKK140.61.
- The Future P/E for Vestas Wind Systems has significantly risen from 20.19x to 161.79x.
- The Discount Rate for Vestas Wind Systems remained effectively unchanged, moving only marginally from 7.14% to 7.12%.
Disclaimer
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