(ADPnews) - Oct 21, 2010 - Citigroup and Nordea have lowered their share price target on Danish wind turbine maker Vestas Wind Systems A/S (CPH:VWS) to DKK 175 from DKK 200 and to DKK 240 from DKK 265 respectively.
The rating by Citigroup is "sell", while Nordea retained its "hold" recommendation.
Citigroup based the downgrade upon its expectations for lower growth rates on the global wind turbine market, namely of 6% in Europe and 8% in the USA in 2011, whereas it formerly forecast a growth of 10% and 14% respectively.
The broker cut its earnings per share (EPS) estimates on Vestas for 2011 by 24% and by 6% for 2012.
In connection to Vestas third-quarter report, due for release on October 26, Citigroup said it will focus on the outlook for 2011.
The broker expects the company to confirm its relatively optimistic market outlook. However, Citigroup would be sceptical to optimistic targets as Vestas has failed to fulfill its sales expectations for the last two years.