Vestas is an obvious acquisition target say share analysts  

2006.11.28
Vestas Wind Systems, the world's largest wind turbine manufacturer, is an obvious acquisition target according to share analysts
Denmark's Vestas Wind Systems, the world's largest wind turbine manufacturer, is an obvious acquisition target according to share analysts. The stock market speculations follow the announcement last week by Vestas of its growth forecasts for 2007 and 2008. Vestas estimates an EBIT margin of 7-9% on revenues of approx. EUR 5.5 bn (USD 7.21 bn) in 2007, a 20% increase. In 2008, Vestas is aiming for an EBIT margin of 10-12%.
 
In a new analysis, investment bank Carnegie states that an acquisition bid for Vestas could come during the next 3-6 months. Carnegie says that over the last 9 months potential buyers have seen "solid improvement of the EBIT margin and a strong control of the net working capital", which indicates a turnaround in earnings is feeding through. Carnegie also emphasises that there are many opportunities to streamline costs.
 
One of Denmark's major high street banks, Jyske Bank, sees opportunities for a change of ownership. Share analyst Jesper Klitgard Frederiksen comments: "With earnings going up and the risk going down, the company is certainly interesting for an industrial buyer looking at growth forecasts for the wind energy industry. That favours acquisition of Vestas. Against it is naturally the fact that the share price has increased." The news was reported by financial daily newspaper Børsen.
 

Next step

Explore business cases

Please contact me

Name
Company
E-mail
Phone
How can we help you?

IDK
We use cookies to make the website perform optimally. You accept cookies by closing the box or continuing to use the website. Click here to read more about cookies. ×