The US bank Citi sees huge potential in the shares of Danish wind turbine manufacturer Vestas. This has not changed after this week’s investor day at rival GE Vernova - quite the contrary.

”The messages from GE Vernova’s investor day were supportive of (the assessment of the potential in) Vestas, although there were relatively few additional details on the outlook for the US onshore wind market beyond what we had heard elsewhere,” Citi writes in a note after the investor day. 

GE Vernova is on its way to being spun off from the General Electric Group and listed independently. On the road to the IPO, GE Vernova hosted an investor day to discuss its plans, goals and outlook for the market. And for GE Vernova, it’s especially about the wind turbine market in the US, which makes up the vast majority of the company’s business. 

”Management highlighted the improving supply and demand conditions in US onshore wind, as GE Vernova is already fully sold out of US turbine units in 2024 and has over 50 orders covering capacity in 2025.”

”This will support order book margins and supports our expectations of improving earnings in the onshore industry, including at Vestas,” Citi writes. 

The bank highlights that the Inflation Reduction Act, IRA, is a strong support for the market outlook in the US. No IRA-specific details were released at the investor day, though.

There was also no explicit forecast for US onshore wind volumes, but GE Vernova commented that it sees strong volume support from the IRA on top of their short-term outlook. 

”We remain positive on Vestas stock and the growth in the US is a pillar of our buy recommendation,” Citi writes. 

Vestas shares fell 0.5% to DKK 194.28 on Wednesday. At DKK 315, Citi has the highest price target among the financial institutions that have analyst coverage of the Danish wind turbine group.