Brokers downgrade Vestas after 2011 guidance cut

Nov 1, 2011 - Several brokers have lowered their view on Danish Vestas Wind Systems A/S (CPH:VWS) after the wind turbine maker cut its outlook for 2011 revenue and operating margin.

HSBC reduced its recommendation on the stock to "neutral" from "overweight" and its price target to DKK 100 from DKK 270. The share will remain under pressure due to the weak third quarter results, the limited information levels and the poor market confidence towards the company's management, HSBC said.

Jefferies now has a "hold" rating against previous "buy". It slashed its target to DKK 90 from DKK 125.

Standard & Poor's has changed its advice to "hold" from "strong buy" and cut the share price target to DKK 95 from DKK 132.

Nordea now has a DKK-100 target on the stock against previous DKK 120. Its recommendation is still "hold".

Citigroup has cut its target to DKK 65 from DKK 85, maintaining "sell".

Goldman Sachs currently has a target of DKK 104, down from former DKK 110. It reiterated its "neutral" recommendation.

Barclays slashed its share price target to DKK 115 from DKK 185 and maintained an "equal weight" rating.

Vestas cut its full-year forecast for revenue to some EUR 6.4 billion (USD 8.840bn) from EUR 7 billion and for operating margin to around 4% from earlier 7%. The downgrade reflects a delay in commissioning a plant in Germany, which forced Vestas to put off the handing over of several projects.

By 0927 CET on Tuesday, shares in the company had dropped 5.28% to DKK 79.90 on the exchange in Copenhagen.

(DKK 1.0 = USD 0.186/EUR 0.134)
(EUR 1.0 = USD 1.381)

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