Vestas Jumps as Nordea Sees Stable Wind Market: Copenhagen Mover
Vestas Wind Systems A/S, the world’s largest wind turbine maker, rose to the highest price in three weeks in Copenhagen trading after Nordea Bank AB said the market is showing signs of stabilization.
Vestas jumped as much as 10 percent to 40.55 kroner, the highest since Jan. 14. The stock added 8.6 percent to 39.84 kroner as of 12:11 p.m. in the Danish capital with volume at 128 percent of the three-month daily average. The gain made the stock today’s biggest winner in the Nasdaq OMX Copenhagen 20 index.
Vestas shares rose 8.1 percent yesterday when the company, which has struggled to make a profit amid industry overcapacity, reported revenue that exceeded analyst estimates. Nordea today raised its recommendation on the share to buy from hold, saying there are signs that turbine prices are stabilizing, citing interviews with wind industry organizations.
“The potential positive triggers outweigh the negative ones,” Patrik Setterberg, an analyst with Nordea in Copenhagen, said in a note. “We expect orders from U.S. customers to pick up for Vestas while order intake from European and Asian customers is expected to stay at a stable level.”
Nordea raised its share price estimate by 10 percent to 44 kroner. That’s the fifth-highest among 21 analysts covering the stock, according to data compiled by Bloomberg.
The Aarhus, Denmark-based turbine maker said yesterday fourth-quarter sales rose 25 percent from a year earlier to 2.5 billion euros ($3.39 billion). That exceeded the average estimate of 2.3 billion euros in a survey of 14 analysts.
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