Vestas: Shares Trading 5% Higher as Market Mulls US Election Debate

Shares in no-moat Vestas opened 5% higher, which we think is in response to an increasing likelihood of a Democratic victory, following the US presidential election debate on Sept. 10 between Donald Trump and Vice President Kamala Harris. A Trump administration is likely to threaten the rollout of renewable energy; earlier in the year he vowed to halt all offshore wind projects on his first day in office through an executive order. During his previous term as president, several offshore wind developers experienced significant delays in obtaining approval for new projects. Shares screen as marginally undervalued to our DKK 180 fair value estimate, which we maintain, but we would require a greater margin of safety before recommending the stock to investors.