In a notable shift of market sentiment, Deutsche Bank analysts upgraded their recommendation for Vestas Wind Systems A/S, the world's leading wind turbine manufacturer, on Thursday. The Danish company's shares are predicted to see an approximate 33% increase over the next year, spurred by a surge in demand from the U.S. This optimistic outlook resulted in a 2.9% rise in Vestas shares during early trading hours on Thursday at the Copenhagen stock exchange.
The analysts anticipate a quarter-on-quarter improvement in Vestas' order intake, having identified signs of it bottoming out. They also predict a significant uptick in U.S. demand due to the activation of renewable energy subsidies under the Inflation Reduction Act.
This positive forecast for Vestas comes despite a broader market downturn triggered by unfavorable news from industry counterparts Siemens Gamesa and Orsted (CSE:ORSTED) A/S. Deutsche Bank's specialists argue that Vestas is not directly exposed to the specific issues plaguing these companies, which include supply chain disruptions leading to impairments for Orsted and quality concerns within Siemens Energy AG's wind power division.
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