Vestas Links New Zealand Wind Farm To Green Hydrogen And Valuation Upside

• Vestas Wind Systems secured a new order to supply turbines for the Kapuni Wind Farm in New Zealand.
• The project will pair wind generation with green hydrogen production, targeting decarbonisation across multiple industries.
• The agreement includes a long term service component, extending Vestas’ role beyond equipment supply.

For investors watching CPSE:VWS, this contract links Vestas directly to green hydrogen, a segment many see as an important complement to renewables. The company’s shares trade at DKK164.7, with a 1 year return of 56.7% and a 3 year and 5 year return showing declines of 22.2% and 35.8% respectively. This means the stock has seen a mix of strong shorter term performance and weaker longer term results.

This New Zealand project also broadens Vestas’ footprint in the Asia Pacific region, which some investors may view as helpful for diversifying its revenue base by geography and technology. The long term service agreement could give the company more stable revenue visibility, while the link to green hydrogen may be watched as a reference point for similar projects elsewhere.

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How Vestas Wind Systems stacks up against its biggest competitors

Investor Checklist: What This Means For Vestas

Quick Assessment

• ⚖️ Price vs Analyst Target: At DKK164.7 versus a consensus target of about DKK175.1, the share price sits roughly 6% below analyst expectations, so not a large gap either way.
• ✅ Simply Wall St Valuation: The shares are described as trading 24.9% below an estimated fair value, which flags potential value support at current levels.
• ❌ Recent Momentum: A 30 day return of about 11.5% decline shows near term sentiment has been weak despite this contract win.

Check out Simply Wall St’s
in depth valuation analysis for Vestas Wind Systems.

Key Considerations

• 📊 The New Zealand green hydrogen project ties Vestas to a new use case for wind power, which some investors may see as broadening its revenue opportunities.
• 📊 Watch how this and similar service backed projects affect revenue mix, margins versus the Electrical industry average margin of 5.5% and the company’s 4.1% net margin.
• ⚠️ The 11.5% 30 day share price decline shows sentiment can swing quickly, so contract news may not translate into short term share price support.

Dig Deeper

For the full picture including more risks and rewards, check out the
complete Vestas Wind Systems analysis.

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
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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.

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