Vestas Outlook Remains Positive in Key Regions

Dow Jones10-02

1205 GMT - Vestas's announced orders for the third quarter are below expectations, but the order outlook in key regions including Germany and the U.S. remains positive, Citi analysts Martin Wilkie and Avinash Mundhra write. Higher costs on the He Dreiht wind farm project probably means that margins at the power solutions unit don't repeat the high seen in the second quarter, Citi says. However, it expects onshore margins to stay high and for annual guidance to be retained. The bank doesn't expect an incremental buyback to be announced with the third-quarter results. "With the order momentum into 2027 likely remaining positive, and margins set to improve further into next year, we retain our buy rating." Citi has a 260 Danish kroner target price on the stock. Shares rise 3.3% to 196 kroner.

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