Credit Suisse, Alm Brand axe price targets on Vestas

(ADPnews) - Oct 22, 2010 - Credit Suisse and Alm Brand have slashed their share price targets on Danish company Vestas Wind Systems A/S (CPH:VWS), reaffirming their ratings at "underperform" and "buy", respectively.

Credit Suisse has cut its target to DKK 150 from DKK 225 and Alm Brand -- to DKK 270 from DKK 350.

In addition, Credit Suisse has downgraded its estimates for the group's income in the next two years by 30% and 28%, respectively.

There is increased risk that Vestas will cut its 2010 guidance once again, Alm Brand concluded based on negative news from a number of other sector players. According to the broker, Vestas's third-quarter report, due for release on October 26, could put more pressure on the group shares.

In the past few days several brokers have downgraded their price targets on Vestas due to pessimistic expectations about the development of the wind power market.

However, the market is still rather positive towards the Danish group as a total 16 analysts have a "buy" rating on the stock, while nine have "neutral" and seven have "sell", according to a poll by SME Direkt.

By 1237 CET today the shares in Vestas had edged up 0.20% to DKK 202 on the stock exchange in Copenhagen.

(DKK 1.0 = USD 0.188/EUR 0.134)

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