Jyske Bank cuts forecast for Vestas order intake in 2011

Sep 7, 2011 - Jyske Bank has downgraded its expectations for order intake of Danish Vestas Wind Systems A/S (CPH:VWS) in 2011 due to uncertainty about the wind-turbine maker's own full-year guidance.

Vestas itself foresees order intake in the range of 7-8 GW. However, there are only four months left of the year and the bank lowered its forecast to 6.6 GW against 6.8 GW previously, analyst Janne Vincent Kjar said. Jyske Bank, however, expects the order intake will improve in 2012 and reiterated its "strong buy" recommendation on the stock.

The Danish company said at a teleconference yesterday that it sees big potential in Brazil, while at the same time competition on the market there is rather strong. A total of 7 GW of wind energy is expected to be installed in the Latin American country until the end of 2014, Steve Sawyer, secretary general of the Global Wind Energy Council, told Danish newswire Ritzau Finans yesterday.

Vestas is expected to keep its traditionally strong position in Brazil and retain its market share of 20-25%, according to Kjar. On the other hand, price competition is harsh, and therefore margins are expected to be lower than in the USA for instance, he stated.

By 1046 CET on Wednesday, shares in the company had risen 2.72% to DKK 98.30 on the exchange in Copenhagen.

(DKK 1.0 = USD 0.189/EUR 0.134)

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