JPMorgan reiterates Overweight rating on Vestas stock amid strong onshore wind outlook

Published 12/09/2025, 08:48
JPMorgan reiterates Overweight rating on Vestas stock amid strong onshore wind outlook

Investing.com - JPMorgan has reiterated its Overweight rating and DKK164.00 price target on Vestas Wind Systems A/S (CSE:VWS) (OTC:VWDRY), a prominent player in the Electrical Equipment industry with a market capitalization of $17.7 billion. The bank cites robust prospects for the company’s onshore wind business despite recent noise surrounding U.S. offshore wind projects. According to InvestingPro analysis, Vestas appears undervalued at current levels.

The investment bank emphasized that recent U.S. offshore wind news has minimal impact on Vestas’ investment case, with the exception of the Empire Wind offshore project, which received approval after an April stop order.

JPMorgan highlighted the strong outlook for U.S. onshore wind, supported by favorable IRS guidelines, and identified the upcoming UK auction as a key catalyst that could provide visibility on offshore orders for 2026 and revenues for 2028-30.

The firm pointed to lower interest rates, stable input prices, and electricity demand growth as positive factors for wind energy growth, reinforcing its bullish stance on Vestas.

JPMorgan also noted that Vestas’ large onshore orders in Q3 have already exceeded its first-half levels, distinguishing the company from its industry peers.

In other recent news, Vestas Wind Systems received an upgrade from JPMorgan, which shifted its stock rating from Neutral to Overweight. This decision was accompanied by an increase in the price target, moving it from DKK126.00 to DKK161.00. The upgrade follows a period where Vestas underperformed against the SXNP by about 85% over the last 18 months. JPMorgan attributes this underperformance to earnings cuts and multiple compression, which they now believe are mostly resolved. These developments suggest a more favorable outlook for Vestas, according to the analysis by JPMorgan.

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