Vestas Wind Systems A/S

“Vestas owns a genuinely compounding Service annuity underpinned by switching costs, fleet data, and an unmatched installed base — but Power Solutions turbine manufacturing remains structurally thin-margined, vulnerable to fixed-price contract losses, and facing a long-run Chinese OEM threat. The business is recovering credibly from its 2022 crisis, balance sheet risk is manageable, and the multi-decade wind energy buildout provides real market tailwinds. However, at DKK 192 (~18x forward earnings near the 52-week high), the stock prices in a successful margin recovery that is plausible but not yet demonstrated. With no margin of safety, thinly aligned management still rebuilding credibility, and ROIC not yet reliably above cost of capital, there is insufficient conviction to buy at current prices. The thesis becomes compelling in the DKK 130–150 range; track and enter on weakness.”