Vestas Wind shares rise on analyst upgrades, renewable energy optimism

Shares of Vestas Wind Systems A/S gained on Tuesday after several brokerages upgraded their ratings on the Danish wind turbine manufacturer, citing an improving outlook for the renewable energy sector and expectations for stronger earnings.

Analysts at Jefferies raised their rating to buy from hold, while Goldman Sachs upgraded its view to neutral from sell, according to a note seen by Reuters. The upgrades follow a recent rally in renewable energy stocks amid policy support for clean energy transition in Europe and the U.S.

Vestas, a key player in the global wind energy supply chain, has faced headwinds in recent quarters due to supply chain disruptions and rising costs. However, analysts noted that the company’s order backlog and focus on operational efficiency could support a recovery in margins and profitability.

The stock was up 3.5% in early trading, outperforming broader European industrial equities. The company is scheduled to report its first-quarter earnings on May 10, with analysts expecting a narrower loss compared to the same period last year.

Renewable energy stocks have been buoyed by the European Union’s accelerated push for wind and solar capacity to meet 2030 climate targets, as well as U.S. incentives under the Inflation Reduction Act. Vestas, which derives most of its revenue from Europe, stands to benefit from sustained demand for onshore and offshore wind projects.

Investors will be watching for management commentary on pricing power, supply chain stabilization, and the company’s ability to secure new contracts amid competitive pressures from Chinese rivals.