Gamesa Corp. Tecnologica SA (GAM) rose the most in almost a month in Madrid trading after Grupo Santander recommended investors buy Spain’s biggest wind-turbine maker.
Gamesa gained as much as 5.8 percent, the most since March 6, and traded 5 percent higher at 2.575 euros as of 2:01 p.m. local time. The shares have more than doubled from an all-time low in July.
The manufacturer last year lost money for the first time since selling shares to the public in 2000. Targeting a 100 million-euro ($128 million) reduction in fixed costs, Gamesa announced a six-month program to eliminate 1,800 jobs, a fifth of its workforce. On Feb. 12, it said it had already achieved 90 percent of its goal.
“Execution on targets has been impressive,” Jose Arroyas, an analyst at Santander, wrote today in a note to investors. “Gamesa has changed its management style considerably under Chairman Ignacio Martin, and his actions are starting to bear fruit.” The stock was raised to buy from hold.
Gamesa may upgrade earnings forecasts later in the year as reductions in fixed costs become “more evident,” Arroyas wrote. An inflow of cash may also help shore up the company’s balance sheet after it said it planned to sell U.S. wind farms valued at 103 million euros, he said.
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