Vestas Wind Systems (Hold, TP: DKK860.00) - More upbeat on 2021e
Strong deliveries drove a significant revenue beat in Q2, but EBIT was hurt by a one-off warranty provision of EUR175m, prompting us to lower our 2020e EBIT by 14%. However, as we expect some spill-over in deliveries to 2021, we have raised our 2021e EBIT by 4%. Vestas exhibited solid execution in spite of pandemic challenges as deliveries and order intake were above consensus. We reiterate our HOLD but have raised our target price to DKK860 (840) on our increased 2021e.Vestas Wind Systems is an industrial machinery and equipment manufacturing company based in Denmark. Co. is engaged in the production of wind turbines. Co.'s main activities comprise development, manufacture, sale, marketing and maintenance of installations that use wind energy to generate electricity. Co. supplies products, from individual turbines to the delivery of turnkey wind power installations globally. Co. supplies guidance services to its customers in connection with the development, financing and ownership of wind turbine projects. Co.'s main customers are utilities and energy companies.
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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