Nordex: Jefferies initiates coverage

(CercleFinance.com) - Jefferies has started to monitor the share of the German wind turbine manufacturer Nordex with a buy rating and target price of 12 euros.


The analyst believes that the rollout of its new Delta4000 series, which has a higher margin, coupled with strong demand for renewable energy, is driving order intake and should boost the group's profitability in the future.

"We model EBITDA margin up +320bps 2019-22 as the Delta4000 is gradually rolled out, replacing older, less profitable models," Jefferies said.

"The stock is trading at a c17% discount to its 3yr average on EV/EBITDA, unjustified," the broker adds.


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