Vestas Gains as Orders Imply Market Share Win: Copenhagen MoverPeter Levring
Vestas Wind Systems A/S rose the most among Copenhagen’s benchmark stocks today as an acceleration of new orders signals the Danish wind turbine marker may be gaining market share.
Vestas jumped as much as 4.2 percent, making it today’s biggest winner in the Nasdaq OMX Copenhagen 20 index. The stock added 3 percent to 87.95 kroner at 10:37 a.m. local time with trading volume at 41 percent of the three-month daily average.
Vestas has announced more orders in the past eight days than in the entire first quarter, building on positive sentiment generated by narrowing losses from a cost-cutting program. The company is benefiting from “very positive news newsflow,” Janne Vincent Kjaer, an analyst with Silkeborg, Denmark-based Jyske Bank A/S, said today.
“The order inflow is strong and they’re getting more orders than their peers,” Kjaer, who recommends investors buy Vestas stock, said by phone. “After a period of losing ground, they’re now winning back territory from the competition and are probably back to where they were a year ago.”
In the last eight days, Vestas has announced four orders with a combined capacity of 386 megawatts, compared with first quarter’s order announcements of 271 megawatts, according to the company’s website. The recent orders include projects in Australia, South Africa, Sweden and the Philippines.
Vestas’ two biggest competitors are Fairfield, Connecticut-based General Electric Co. and Munich, Germany-based Siemens AG. GE and Vestas were tied last year as the world’s biggest suppliers of wind turbines with 5.7 gigawatts each, according to Bloomberg New Energy Finance.
Vestas reported on May 8 that its net loss for the three months ending March 31 shrank to 151 million euros ($195 million) from 162 million euros a year earlier. Free cash flow rose by 235 million euros to a deficit of 60 million euros in the quarter, according to the Aarhus, Denmark-based company.