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Vestas: Self-Fix Opportunity at Leader in Wind Power Turbines

Presentation at European Investing Summit 2024, by MOI Global

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Ole Søeberg of Nordic Investment Partners presented his investment thesis on Vestas Wind Systems (Denmark: VWS) at European Investing Summit 2024, held from October 29-31.

Thesis Summary

Vestas is the world leader in wind power turbines. The company focuses on the European and North American markets.

Due to an order book that did not appropriately incorporate higher cost assumptions for steel and transportation, profitability plummeted as Vestas had to shoulder the cost increases. New orders/contracts come with better profitability, and earnings are likely to grow strongly in the coming years.

Ole views Vestas as a long-term winner, as low-carbon sources increasingly replace traditional fossil fuels in power generation.

Slide Presentation

Click here to download the slides.

Edited Transcript

The following transcript has been edited for space and clarity. (MOI Global members, access all features, including ways to follow up with Ole.)

Ole Soeberg: It’s almost scary to say I have four decades of investment experience, but I can’t run away from the facts. Moreover, I truly enjoy it, so I hope there’s at least two-and-a-half decades more of it for me.

This year, I want to present an idea from my home turf—Danish company Vestas. During my investment banking period—from 1985 until just before 2000—I was at Alfred Berg, and among the things we put on the stock exchange back in 1998 was Vestas. I was part of the IPO and have been in and out of the company a few times. It is pretty cyclical, but right now, it’s down near the bottom. This may be a new opportunity for a three- to five-year period of decent returns.

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