Vestas Leaves Analysts’ Questions Unanswered, Barclays Says

Aug 21, 2014 11:50 am ET

Aug. 21 (Bloomberg) -- Vestas Wind Systems A/S left “more questions than answers” on the prospects for the biggest wind- turbine maker during a conference call, according to analysts at Barclays Plc.

On the call after second-quarter results yesterday, Vestas Chief Executive Officer Anders Runevad and Chief Financial Officer Marika Fredriksson declined to answer questions “a total of 14 times,” Barclays analyst David Vos wrote in a note today to investors. A Vestas spokesman said it’s company policy not to comment on analyst reports.

“Management appears unwilling or unable to provide a view on Vestas’ future,” the analysts wrote. While the former would be “particularly unhelpful,” they said, “if it’s the latter, it’s the best illustration of the industry’s unpredictable nature and scarcely makes the case for long-term ownership of the stock.”

Vestas yesterday raised its full-year forecast for margins and posted a third straight quarterly profit, beating the average of analyst estimates. The stock fell 6 percent to 254.50 kroner by the close in Copenhagen, adding to a 1.6 percent drop yesterday.

“We are at a loss to fully explain the margin improvement,” Barclays said in the note. It also cited a lack of medium-term guidance from Vestas as a possible sign that orders may be peaking.

Barclays reiterated its “underweight” rating on the stock and raised its price target 5 percent to 220 kroner.