Oct. 1 (Bloomberg) -- Vestas Wind Systems A/S rose the most among Copenhagen’s benchmark stocks today as Bank of America Merrill Lynch said the partnership with Mitsubishi Heavy Industries Ltd. will benefit the Danish turbine maker
Vestas rose as much as 4.1 percent, making the stock today’s biggest winner in the Nasdaq OMX Copenhagen 20 index. The shares rose 4 percent to 144.70 kroner at 1 p.m. local time with trading volume at 66 percent of the three-month daily average.
Vestas, based in Aarhus, Denmark, said last week it will work with Mitsubishi Heavy on developing and selling offshore wind turbines. BofA Merrill Lynch today raised its price estimate on Vestas shares and repeated a buy recommendation, citing the joint venture. The bank’s price target of 180 kroner, up from 150 kroner previously, is the highest of any bank covering the stock, according to data compiled by Bloomberg.
“The move is an important step towards long-awaited consolidation in wind turbine manufacturing and is likely to open up midterm upsides for Vestas,” BofA Merrill Lynch analysts, including Pinaki Das, said in a note to clients. “The JV news adds to strong orders for Vestas in recent weeks.”
Vestas said late yesterday it won a 51-megawatt order for a wind farm in Uruguay. The contract brought Vestas’s announced orders in the third quarter to 1,250 megawatts.
The Mitsubishi Heavy partnership reduces risks for Vestas and improves the chances of the Danish company gaining market share in the growing offshore wind market, BofA Merrill Lynch said. It also gives Vestas better access to the Japanese market, which is set to grow “substantially,” the bank said.
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