On Wednesday, the wind turbine giant Vestas Wind Systems presented a quarterly report for the third quarter which disturbed the market and sent the share down over 18 percent to 218 kroner at the close of trading in Copenhagen.
In connection with the presentation of the results, the company used the opportunity to downgrade the expectations for the operating margin for 2021 for the second time this year. The reason must be a combination of logistics chaos and increased commodity prices, problems they expect will persist well into 2022.
In the wake of the performance slump, several brokerages have downgraded their price targets, Bank of America has even downgraded its perception to neutral, pointing out that the company was not as shielded from cost inflation and logistics challenges as previously assumed.
– Volatility in the supply chain next year, combined with lower volumes in the US, may have problems improving margins, which could have a negative effect on company value, despite strong long-term growth prospects, the major bank writes in an update.
- Bank of America downgrades the view of the share from “buy” to “neutral” and lowers the price target from NOK 260 to NOK 230.
- SEB improves the “hold” recommendation, but cuts the price target from 270 to 235 kroner.
- Nordea still recommends «hold», but reduces the price target from 240 to 235 kroner
- Carnegie still believes you should sell the share, and cuts the price target from NOK 220 to NOK 175.
- Kepler Cheuvreux opposes the buy recommendation, but reduces the price target by DKK 5 to DKK 275.
Both board member Eva Berneke and CEO Henrik Andersen took the opportunity to buy shares at lower levels on Wednesday. While Berenke bought 4,000 shares for DKK 236.10, Andersen was able to buy 3,000 shares for DKK 224.70
On Thursday afternoon, the share has cautiously started to climb upwards again, by 2 percent to 220 kroner.