Vestas Wind Systems A/S (VWS) rose the most in a week in Copenhagen trading after Nordea Bank AB said the Danish wind turbine maker is showing progress in returning to profit.
Vestas jumped as much as 3.4 percent, the most since April 23. The shares gained 1.7 percent to 49.77 kroner at 10:52 a.m. in the Danish capital with trading volume at 52 percent of the three-month daily average. The advance made the stock today’s second-biggest winner on the Nasdaq OMX Copenhagen 20 index. (KFX)
Vestas, which got new orders this month in Chile and Canada, has struggled to shrug off losses amid industry overcapacity. The Aarhus, Denmark-based company’s cost cut plans will pay off, Nordea said today. The bank increased its price estimate on the stock to 54 kroner from 52 kroner and repeated a buy recommendation.
“The Vestas turnaround story is the reason I’m raising my target,” Patrik Setterberg, an analyst with Nordea in Copenhagen, said by phone. “I’m confident they’re on the right track.”
Gamesa Corp. Tecnologica SA, Spain’s biggest wind turbine maker, reported yesterday first-quarter earnings before interest, tax and extraordinary items of 22 million euros ($29 million), compared with a 14 million-euro loss by the same measure a year earlier.
“We’ve also seen some nice first-quarter numbers from Gamesa,” Setterberg said. “Just like Vestas, Gamesa are cutting costs, trying to get themselves profitable on a lower activity level and have been able to take a step in the right direction. Hopefully Vestas can show the same thing with their first- quarter results.”
Vestas is due to publish first-quarter earnings on May 8. The company will report an Ebit loss of 103 million euros, according to the average estimate in a Bloomberg survey of six analysts. That compares with a reported Ebit loss of 204 million euros in the same period of 2012.
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