Trump announces trade deal with EU following months of negotiations
Investing.com -- Vestas (CSE:VWS) has been downgraded to “reduce” from “hold” by analysts at Kepler Cheuvreux, who flagged mounting short-term risks that could delay long-term value recovery, sending shares down over 3% on Monday.
The revision comes amid growing concerns over the company’s offshore ramp-up, competitive pressures in emerging markets, and political shifts affecting demand in the U.S.
Kepler analysts noted that the offshore wind segment is at a “critical stage,” with potential risks stemming from supply-chain takt time issues and technology performance shortfalls.
Any delay in meeting production targets could result in missed customer delivery commitments, further straining revenue prospects.
Emerging-market competition, particularly from Chinese players, was cited as another major concern.
The analysts said this pressure is limiting Vestas’s order potential, especially in regions where low-cost competitors are gaining ground.
Meanwhile, the U.S. onshore market outlook has dimmed following political and subsidy shifts, pushing more of the mid-term growth expectation toward Europe.
Although the Service division remains a key pillar of value, Kepler warned that the recovery plan is still in its early stages.
The brokerage sees a risk of further disruption as Vestas attempts to stabilize and grow that part of the business.
The report said the need to balance short-term risks against long-term value creation, concluding that current conditions suggest more downside risk is likely before recovery momentum builds.
As a result of this reassessment, Kepler cut its target price for Vestas to DKK100 from DKK120, a 16.7% downward revision.
The current trading price of DKK120.60 implies a 17.1% downside relative to the revised target.
The brokerage also adjusted earnings estimates sharply, lowering its 2025E EPS forecast by 19.1% and its 2026E projection by -24.6%.