Wind turbine group Vestas is better placed to defend its top spot in the global market armed with the proceeds of its recent share issue, said investment bank Nordea.
Nordea analysts reiterated their 'buy' rating on Vestas and
boosted their target price for the company’s shares by DKr10 to DKr220 (they are trading at about DKr197 today), as they gave their verdict on a significant few days for
the Danish group last week.
Vestas raised about €442m ($597m) in
a capital raising, which it announced on the eve of its annual report and Q4
Nordea said: “Following its capital
injection, Vestas should be better positioned to defend its market-leading
position in the turbine industry.
“We believe the capital was necessary to keep up with
competition against GE and Siemens, and to further distance Vestas from tier
two players such as Gamesa, Nordex, Suzlon and Enercon.”
The analysts also noted that thanks to its stronger balance sheet, the wind group hopes to see
increased confidence among customers over its warranty obligations.
The bottom end of Vestas' 2014 guidance – revenue
of at least €6bn and Ebit
margin at least 5% – “seems conservative” in the light of a pickup in the US market,
and is likely to be increased as the year unfolds, Nordea added.
Vestas’ 2014 order
intake – the “greatest threat” to a positive investment case – is expected by
the bank to remain solid at 5.8GW.