Vestas Wind Systems (Hold, TP: DKK460.00) - Margin matters
We are 7% below consensus on Q4e EBIT (results due on 7 February before market open), but investor focus is set to be on the 2018 EBIT margin guidance. We have factored in a c11% margin for 2018, but see material downside risk if Vestas is unable to cope with relentless price pressure from auctions and the fierce fight for market share. We have lowered our 2018–2019e EBIT by 4–7%, and keep our HOLD and DKK460 target price
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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