Vestas Wind Systems "sell"

09/01/05 - Jyske Bank

LONDON, September 1 (newratings.com) - Analyst Jesper Klitgaard Frederiksen of Jyske Bank reiterates his "sell" rating on Vestas Wind Systems (VWS). The 12-month price target is set to DKK99.

In a research note dated August 30 and published this morning, the analyst mentions that the company has reported its 1H EBIT at -€78 million, significantly higher than the consensus. Vestas Wind Systems has raised its sales guidance for 2005 from €3.0-€3.2 billion to € 3.2-€3.4 billion. The analyst expresses his concern regarding the company’s ability to meet its targets for 2008, including EBIT margins of at least 10% and at least 35% market share.