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Vestas is approaching a turning point as it works through its turbine order backlog ahead of an expected influx of orders for projects in the US, according to a financial analyst.
Deutsche Bank’s Gael de-Bray changed his recommendation for investors to buy shares in the Danish turbine maker this week – an upgrade from the previous advice of ‘hold’.
In an investor note, de-Bray said many Vestas shares had been sold as sentiment in the wind industry had “deteriorated” in recent months.
However, he sees Vestas approaching an inflection point for both its profit margin and its order book, implying a change in fortune for the manufacturer, which had reported that it would be “challenging” to turn a profit this year.
This recovery will in part be fuelled by greater activity in the US market, as developers and manufacturers alike look to take advantage of subsidies under the Inflation Reduction Act (IRA).
He added that the Danish company is untouched by specific issues hitting Siemens Gamesa (turbine quality) and Ørsted (project impairments) that have dominated wind power news in recent months.
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