From Morningstar:

The Danish wind turbine maker Vestas surprised the market by reporting higher-than-expected revenue and turning from loss to profit in third-quarter results, sending shares 8% higher. Several large orders were also announced in the fourth quarter, raising expectations for this week’s full year earnings report. Vestas received calls for several large orders, including a 1.1 GW order in the United States. Donen added that the consensus is guiding for 7.6GW of orders during the quarter compared with 4.5 GW during the previous quarter.

Vestas has enjoyed high prices for its turbines, benefiting the company over offshore wind developers that have struggled with rising interest costs and supply chain disruption. This upward trend is expected to continue in the fourth quarter, as profitability is likely to remain high due to selling prices.

The analyst from Morningstar has maintained Vestas’ fair value estimate of 197 Danish kroner, forecasting revenue growth of 6% in 2023 to €15.4 billion, driven by double-digit pricing growth for onshore turbines and a 10% increase in service revenue. However, with shares trading around 192 Danish kroner, Vestas shares are fairly valued compared to the fair value estimate of 197 Danish kroner.



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