Bloomberg News

Vestas Drops as Exane Cuts Share Target By 50%: Copenhagen Mover

February 14, 2012

Feb. 13 (Bloomberg) -- Vestas Wind Systems A/S, the world’s biggest wind turbine maker, fell in Copenhagen trading, after Exane BNP Paribas cut its valuation of the company in half.

Vestas fell as much as 1.1 percent, reversing a gain of much as 2.4 percent earlier today. The stock declined 0.5 krone to 56.65 kroner at 1:23 p.m. in the Danish capital giving the Aarhus, Denmark-based company a market value of 11.5 billion kroner ($2.05 billion).

Exane today cut its share price estimate to 25 kroner from 50 kroner and repeated an “underperform” recommendation. Vestas last week reported sales that missed its forecast, said its chief financial officer stepped down and its chairman will leave next month. Exane’s target is the lowest of 22 analyst valuations tracked by Bloomberg, and compares with an average 12-month price of 58.42 kroner a share. Vestas peaked at 692 kroner a share on June 17, 2008.

The “management shake-up looks unlikely to overcome the tough industry environment,” Arnaud Brossard, a Paris-based analyst with Exane, said in the note. He characterized Vestas’s 2012 sales forecast as “optimistic.”

Last week’s resignation of CFO Henrik Norremark came less than four weeks after he was promoted to deputy chief executive officer. Chairman Bent Erik Carlsen and Deputy Chairman Torsten Erik Rasmussen won’t stand for re-election at the March annual general meeting, Vestas also said.

The company said Feb. 8 it expects 2012 revenue of 6.5 billion euros ($8.6 billion) to 8 billion euros. Revenue was 5.8 billion euros in 2011, falling short of the company’s initial 7 billion-euro target and missing guidance a month earlier of 6 billion euros.

Vestas last month said it needs to cut 10 percent of its workforce to adapt to Chinese competition and predicted further hurdles in the U.S. should federal subsidies expire.

--Editors: Tasneem Brogger,

To contact the reporter on this story: Christian Wienberg in Copenhagen at

To contact the editor responsible for this story: Tasneem Brogger at

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