COPENHAGEN, Sept 9 (Reuters) - Danske Equities on Thursday lowered its recommendation on shares in Danish wind turbine maker Vestas to 'reduce' from 'buy' and the price target to 175 crowns ($29.9) per share from 315 crowns.
'Our detailed review of the cost, cash flow and balance sheet structure has revealed that underlying profitability is far weaker than consensus estimate,' Danske said in a note to clients.
'We believe current EBIT (operating profit) margins could be inflated by as much as 4-7 percentage points and see EBIT margins being squeezed substantially from cost escalation.' ($1=5.860 Danish Crowns) Keywords: VESTAS/ (Copenhagen newsroom, tel: +45 3396 9649, e-mail: copenhagen.newsroom@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'Our detailed review of the cost, cash flow and balance sheet structure has revealed that underlying profitability is far weaker than consensus estimate,' Danske said in a note to clients.
'We believe current EBIT (operating profit) margins could be inflated by as much as 4-7 percentage points and see EBIT margins being squeezed substantially from cost escalation.' ($1=5.860 Danish Crowns) Keywords: VESTAS/ (Copenhagen newsroom, tel: +45 3396 9649, e-mail: copenhagen.newsroom@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.