Vestas Gains as Obama Vows Wind Energy Support: Copenhagen Mover

Vestas Wind Systems A/S jumped the most among Copenhagen’s benchmark stocks today after U.S. President Barack Obama pledged to boost investment in renewable energy.

Vestas advanced as much as 5.7 percent, the biggest increase in the Nasdaq OMX Copenhagen 20 index, and traded at 76.45 kroner at 9:51 a.m. in the Danish capital with volume at 29 percent of the three-month daily average.

“The plan I’m announcing today will help us double again our energy from wind and sun,” Obama said yesterday, according to a transcript of a speech held at Georgetown University in Washington. “Today, I’m directing the Interior Department to green light enough private, renewable energy capacity on public lands to power more than 6 million homes by 2020.”

Vestas, which has struggled with falling turbine prices, reported a narrower loss last month after progressing more than half-way into a two-year program to return to profit. The company hasn’t announced any U.S. orders so far this year after installations jumped to a record in 2012 when developers raced to complete projects ahead of the Dec. 31 expiration of a U.S. production tax credit.

“Vestas has recently been able to boost activity in its order book, but U.S. orders have been limited so we welcome Obama’s targets, which should support the share price,” Nordea Private Banking, a unit of Nordea Bank AB, said in a note to clients today.

Price Estimate

Nordea on June 24 raised its price estimate and repeated a recommendation that investors buy Vestas’s stock because order intake in the second quarter is set to be the highest since the last three months of 2011, helped by new contracts in Canada, Chile and Mexico.

“We argue that this strengthening in order intake is not a coincidence, but rather a sign that Vestas’s customers have greater trust in the financial position of the company,” Patrik Setterberg, a Copenhagen-based analyst with Nordea, said then. “We believe that some customers reduced counterpart risk in 2012, negatively influencing order intake.”

Setterberg said then he expected the company to sign “a couple” of U.S. orders in the third quarter and book up to 2,000 megawatts of U.S. wind projects by the end of 2014.

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