{"id":180042,"date":"2010-01-14T11:34:58","date_gmt":"2010-01-14T16:34:58","guid":{"rendered":"http:\/\/blogs.wsj.com\/environmentalcapital\/2010\/01\/14\/wind-jammers-more-buy-recommendations-for-denmarks-vestas\/"},"modified":"2010-01-14T11:34:58","modified_gmt":"2010-01-14T16:34:58","slug":"wind-jammers-more-%e2%80%98buy%e2%80%99-recommendations-for-denmark%e2%80%99s-vestas","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/180042","title":{"rendered":"Wind Jammers: More \u2018Buy\u2019 Recommendations for Denmark\u2019s Vestas"},"content":{"rendered":"

Here\u0092s a stumper: Why are shares in the global leader in the most mature renewable-energy technology so moribund? <\/p>\n

Denmark\u0092s Vestas Wind Systems, the biggest maker of wind turbines in the world, can\u0092t get any love from investors. Its share price, after an up-and-down 2009, is roughly where it was at the start of last year.<\/p>\n

Some analysts think that\u0092s out of whack. HSBC today put a \u0093buy\u0094 on Vestas shares and reiterated a target price of 500 Danish kroner; the stock today trades at around 333, well off the highs it reached last spring and summer. Jeffries Research also put out a \u0093buy\u0094 recommendation today, though with a slightly lower target price.<\/p>\n

HSBC\u0092s reasoning is simple enough: Since the beginning of December, turbine orders have started to flow again. Vestas is maintaining its position behind General Electric as the number-two turbine company in the U.S., the world\u0092s biggest wind market. And that market can only grow, the bank figures, as Washington hands out more clean-energy grants and prepares to pass a national renewable-energy standard. HSBC says that Vestas\u0092 30% discount to its peer group is \u0093completely unjustifed.\u0094<\/p>\n

Jeffries makes similar arguments, highlighting a big new turbine order expected in Kenya to stress the strength of Vestas\u0092 order book and its unparalleled global reach.<\/p>\n

Sure, Vestas\u0097like GE, Gamesa, Siemens and other big turbine makers\u0097have worries. The explosion of China\u0092s wind industry has proven a double-edged sword. First, that big and fast-growing market was partly closed to foreign suppliers. And the rapid growth of China\u0092s wind industry has created scores of wind-turbine makers itching to start exporting their wares to Europe and America\u0097which could, one day, threaten market share and margins for the established players.<\/p>\n

In the meantime, HSBC says, investors could do a lot worse than to hitch their wagon to a global leader whose shares look cheap.<\/p>\n

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Here\u0092s a stumper: Why are shares in the global leader in the most mature renewable-energy technology so moribund? Denmark\u0092s Vestas Wind Systems, the biggest maker of wind turbines in the world, can\u0092t get any love from investors. Its share price, after an up-and-down 2009, is roughly where it was at the start of last year. […]<\/p>\n","protected":false},"author":761,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-180042","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/180042","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/761"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=180042"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/180042\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=180042"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=180042"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=180042"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}