Brokers slash Vestas price target

(ADPnews) - Oct 28, 2010 - Several brokers have slashed their share price targets on Danish wind-turbine maker Vestas Wind Systems A/S (CPH:VWS), which has just released its financial report for the third quarter of 2010.

Nordea has cut its target on Vestas to DKK 200 from DKK 240, but has upgraded its recommendation to "buy" from "hold".

S&P has lowered its target to DKK 236 from DKK 253 and Jyske Bank -- to DKK 255 from DKK 355. Both brokers have reaffirmed their "buy" ratings on the stock.

Royal Bank of Scotland (RBS) has set its new target at DKK 200, down from DKK 220, and has rated "hold" on Vestas.

The Danish major has also had its price target cut by JP Morgan -- to DKK 180 from DKK 230, by Bank of America/Merrill Lynch -- to DKK 200 from DKK 230, by Liberium -- to DKK 187 from DKK 269, by Unicredit -- to DKK 140 from DKK 170 and by Danske Equities -- to DKK 150 from DKK 175. The first two brokers have an "underperform" rating on the stock, the second two have "sell" and the last one has "reduce".

Vestas saw its pretax profit drop to EUR 175 million (USD 241.7m) in July-September 2010 from a year-earlier EUR 229 million as revenue shrank by 5% to EUR 1.722 billion. Analysts polled by SME Direkt had on average forecast a profit of EUR 89.6 million and revenues of EUR 1.595 billion.

(DKK 1.0 = USD 0.185/EUR 0.134)
(EUR 1.0 = USD 1.381)

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