Vestas Gains as Banks Raise Price Targets: Copenhagen Mover

Vestas Wind Systems A/S, the turbine maker that’s installed the most production capacity, topped Copenhagen’s benchmark gainers today after Nordea Bank AB and Jyske Bank A/S analysts raised their share price estimates.

Vestas jumped as much as 2.2 percent, the biggest advance in the Nasdaq OMX Copenhagen 20 index which fell 0.4 percent. The stock added 1.9 percent to 47.78 kroner as of 10:46 a.m. in the Danish capital with volume at 50 percent of the three-month daily average.

Vestas, which holds its annual general meeting in its Danish hometown of Aarhus later today, has lost about 93 percent of its market value since a 2008 peak as the producer has struggled to make a profit amid industry overcapacity. Nordea today raised its price estimate by 18 percent to 52 kroner, while Jyske raised its target by 12 percent, to 47 kroner, according to data compiled by Bloomberg.

“There’s a lot of potential if Vestas succeeds in turning things around, but note that risks are high,” Nordea said. Higher U.S. natural gas prices raise the chances the company will get new orders as utilities may seek alternative energy sources, Nordea’s Copenhagen analysts said in a note, repeating a buy recommendation.

The two banks’ new estimates brought Vestas’ average share price target to the highest since October. The average of the 28 analysts tracking the stock was 38.01 kroner, the according to data compiled by Bloomberg.