Vestas Gains as GE Predicts U.S. Order Influx: Copenhagen Mover
Vestas Wind Systems A/S (VWS) rose for a 12th day in Copenhagen trading, the longest winning streak since the wind turbine maker listed 15 years ago, as General Electric Co. (GE) said customers are placing new orders in the U.S. market.
Vestas jumped as much as 2.3 percent and has gained in every session since April 18, the longest rising streak since its 1998 initial public offering. The stock rose 0.9 percent to 53.55 kroner at 10:25 a.m. in the Danish capital with trading volume at 44 percent of the three-month daily average.
Vestas, which is due to report earnings tomorrow, has struggled to shrug off losses amid industry-wide overcapacity and reduced government subsidies for green energy projects. GE, Vestas’ biggest rival in North America, said yesterday that a renewal in U.S. production tax credits is sparking orders.
“We’ve had an incredible response from customers,” Anne McEntee, vice president of GE’s renewable energy division, said in a statement published yesterday. Fairfield, Connecticut-based GE said it has received turbine orders for one gigawatt so far this year.
Vestas shares trade about 14 kroner above the average 12-month price target of analysts covering the stock, according to data compiled by Bloomberg. That’s the biggest positive difference since April 2011.
The Aarhus, Denmark-based company had a first-quarter loss before interest and tax of 96.7 million euros ($126 million), according to the average estimate in a Bloomberg survey of nine analysts. That compares with a reported 204 million-euro loss by the same measure in the first quarter of 2012. Vestas releases its results at 8:30 a.m. tomorrow in Copenhagen.
To contact the reporter on this story: Gelu Sulugiuc in Copenhagen at email@example.com
To contact the editor responsible for this story: James Ludden at firstname.lastname@example.org