Positive indicators for Vestas

Vestas (OMX: VWS) recorded share gains of 1.7 per cent this week, and jumped as much as 3.4 per cent, with financial observers calling it an indication of positive progress by the company in returning to profit.

The Danish wind turbine manufacturer received new orders this month in Chile and Canada after a period of difficulty due to overcapacity.

“The Vestas turnaround story is the reason I’m raising my target,” Patrik Setterberg, an analyst with Nordea in Copenhagen, told Bloomberg. “I’m confident they’re on the right track.”

In another positive sign for the wind power sector, Gamesa Corp. Tecnologica SA, Spain’s biggest wind turbine maker, reported yesterday first-quarter earnings before interest, tax and extraordinary items of $29m, compared with a $18m loss by the same measure a year earlier.

Vestas is due to publish first-quarter earnings on May 8.

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