Vattenfall has ordered Vestas turbines featuring low-emissions steel for the 63 MW Clashindarroch II wind farm in Scotland, marking the first time this lower-impact material has been used in a commercial wind project. This step highlights how Vestas is integrating cleaner materials into turbine manufacturing, potentially reshaping sustainability standards across the wind supply chain. We’ll now explore how this pioneering use of low-emissions steel could influence Vestas’ investment narrative and perceived competitive positioning.
The latest GPUs need a type of rare earth metal called Dysprosium and there are only 32 companies in the world exploring or producing it. Find the list for free.
What Is Vestas Wind Systems’ Investment Narrative?
To own Vestas today, you really have to believe in its ability to convert a strong order book, improving margins and an experienced management team into resilient, high quality earnings over time. Recent results showed profit growth picking up and returns on equity at solid levels, while the stock still trades a little below several fair value estimates, even after a very strong 12‑month run. Against that backdrop, the Vattenfall order using low‑emissions steel looks less like a short term earnings catalyst and more like a small but telling proof point in Vestas’ push to differentiate on technology and sustainability. It could subtly reinforce pricing power and customer stickiness over time, but on its own it probably does not shift the key near term risks, which still sit around execution, project profitability and valuation after the share price rally.
However, there is a specific execution risk here that shareholders should keep in mind.
Vestas Wind Systems’ shares have been on the rise but are still potentially undervalued by 12%. Find out what it’s worth.Exploring Other Perspectives
CPSE:VWS 1-Year Stock Price Chart Fourteen fair value estimates from the Simply Wall St Community span about DKK102 to DKK218, with some members seeing very limited upside and others expecting much more. Set against recent share price strength and execution risks around complex projects like low emissions steel turbines, that spread in opinion underlines why it can help to weigh several viewpoints before deciding how Vestas fits in a portfolio.
Explore 14 other fair value estimates on Vestas Wind Systems – why the stock might be worth as much as 14% more than the current price!
Build Your Own Vestas Wind Systems Narrative
Disagree with this assessment? Create your own narrative in under 3 minutes – extraordinary investment returns rarely come from following the herd.
A great starting point for your Vestas Wind Systems research is our analysis highlighting 3 key rewards that could impact your investment decision.Our free Vestas Wind Systems research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate Vestas Wind Systems’ overall financial health at a glance.Seeking Other Investments?
Right now could be the best entry point. These picks are fresh from our daily scans. Don’t delay:
This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
New: Manage All Your Stock Portfolios in One Place
We’ve created the ultimate portfolio companion for stock investors, and it’s free.
• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com