Vestas Wind Systems (Buy, TP: DKK240.00) - Service offers downside protection
The share-price performance in the green energy space, and the wind sector in particular, has been weak YTD, and Vestas is no exception. In our view, this is due to several factors (e.g. Siemens Energy’s profit warning, margin, cash flow, and order intake concerns). We see these as generally exaggerated, and believe Vestas’ service business offers downside protection, with an SOTP value of cDKK120–160/share. Thus, we view this as an attractive entry point into the Vestas story. We reiterate our BUY and DKK240 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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