Vestas Orders Appear Muted, Offshore Could Limit Margins

Dow Jones09-29

0948 GMT - Vestas Wind Systems' third-quarter order intake looks light, according to Deutsche Bank. The bank estimates that power solutions orders are down 28% on year and 3% sequentially, based on disclosed orders so far. "While the quarter is not over, we think it's very difficult for VWS to reach consensus expectations here," analyst John Kim writes. The bank expects the Danish wind-turbine maker's third quarter to reflect a more normalized level of project execution in onshore versus the second quarter. Additionally, some offshore issues are holding back power solutions profitability. Service margins could come in at 16%, in line with management's guide for 15.5%-17.5%. Deutsche Bank retains its hold rating on the stock and lowers its target price to 205 Danish kroner from 215 kroner. Shares fall 4.4% to 190.50 kroner.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment