Vestas Wind Systems A/S, the world’s largest manufacturer of wind turbines, has been unduly swept up in a selloff triggered by negative news from peers, according to Deutsche Bank analysts.
(Bloomberg) — Vestas Wind Systems A/S, the world’s largest manufacturer of wind turbines, has been unduly swept up in a selloff triggered by negative news from peers, according to Deutsche Bank analysts.
Analysts including Gael de-Bray raised their recommendation to buy from hold, saying they expect shares in the Danish wind giant to rise by around a third in the coming 12 months, fueled by an uptick in US demand. Vestas shares rose as much as 2.9% in early Thursday trading in Copenhagen.
While the analysts agreed that the industry is facing challenges, Vestas has “limited direct exposure to specific issues at Siemens Gamesa and Orsted that have dominated the newsflow.” This includes Orsted A/S impairments due to supply chain disruptions and quality issues at Siemens Energy AG’s wind-power division.
In a note to clients published after market close on Wednesday, they said they expect the company’s order intake to have troughed, and project a quarter-on-quarter improvement as demand in the US market ticks higher with subsidies for renewable energy in the Inflation Reduction Act kicking in.
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