Risk Reward Update: Vestas Wind Systems A/S | Europe

Research evidence excerpt

Not for redistribution without written consent of Morgan Stanley

M

Update

August 19, 2026 05:00 AM GMT

Morgan Stanley & Co. International plc+

Vestas Wind Systems A/S | Europe

Max R Yates

Equity Analyst

Risk Reward Update

Vestas Wind Systems A/S (VWS.CO, VWS DC)

What’s Changed

Capital Goods | Denmark

Vestas Wind Systems A/S (VWS.CO)

From

To

Price Target

DKr 190.00

DKr 210.00

Bull Case

DKr 255.00

DKr 275.00

Base Case

DKr 190.00

DKr 210.00

Bear Case

DKr 125.00

DKr 145.00

Updated Components

EPS

Bull Base Bear Scenarios

Risk Reward for Vestas Wind Systems A/S (VWS.CO) has been

updated

Stock Rating

Industry View

Price target

Shr price, close (Aug 18, 2026)

52-Week Range

Fiscal Year Ending

EPS (€)**

Prior EPS (€)**

Equal-weight

In-Line

DKr 210.00

DKr 204.20

DKr 213.50- 111.95

12/25 12/26e 12/27e 12/28e

0.82

1.43

1.19

1.72

1.49

1.96

1.66

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework

** = Based on consensus methodology

e = Morgan Stanley Research estimates

Reason for change

We increase our 2026/27/29 EPS by 20.2%/15.8%/17.8%. The main driver is increased

margin forecasts, after the strong 2Q26 result. We now forecast 8.8% EBIT margins

for 2026 compared to company guidance of 7-9%. Our 2027 EBIT forecast of €2.2bn

is in-line with consensus.

We increase our target price to Dkk 210 (from 190) driven by our increased

forecasts. Our bull case (275) and our bear case (145) also increase for similar

reasons.

We remain Equal-weight on Vestas. We continue to see room for self help (offshore

and service) to expand margins further in 2027-28. However, with Vestas already

trading on 1.1x 2027 EV/Sales, we see this EBIT margin improvement as already

priced in. In addition, the service margins continue to show limited progress in 2026,

and while potential for recovery, we think the price cost dynamics remain

unpredictable. We continue to prefer Siemens Energy (OW) in Power Equipment, as

well as Schneider (OW) more broadly in Electricals.

Morgan Stanley does and seeks to do business with

companies covered in Morgan Stanley Research. As a result,

investors should be aware that the firm may have a conflict of

…