Vestas: Trump’s Presidential Victory Presents Buying Opportunity

Shares in no-moat Vestas were trading 10% lower Nov. 6 on the news that Donald Trump has won the US presidency. The US contributes 20% to Vestas's revenue and a Trump administration is seen as negative for the business, with the Republican having earlier in the year vowed to halt all offshore wind projects on his first day in office through an executive order. This adds to the pessimism surrounding the stock, following a series of earnings misses this year. However, the investment story for Vestas is a long-term theme (well beyond the next five years) and we believe the current drawdown presents a buying opportunity in Vestas, as we keep our recently revised DKK 164 fair value estimate unchanged.