"Wind Jammers: More ‘Buy’ Recommendations for Denmark’s Vestas" (VWDRY; VWS.CO)

From Environmental Capital:

Here’s a stumper: Why are shares in the global leader in the most mature renewable-energy technology so moribund?

Denmark’s Vestas Wind Systems, the biggest maker of wind turbines in the world, can’t get any love from investors. Its share price, after an up-and-down 2009, is roughly where it was at the start of last year.

Some analysts think that’s out of whack. HSBC today put a “buy” on Vestas shares and reiterated a target price of 500 Danish kroner; the stock today trades at around 333, well off the highs it reached last spring and summer. Jeffries Research also put out a “buy” recommendation today, though with a slightly lower target price.

HSBC’s reasoning is simple enough: Since the beginning of December, turbine orders have started to flow again. Vestas is maintaining its position behind General Electric as the number-two turbine company in the U.S., the world’s biggest wind market. And that market can only grow, the bank figures, as Washington hands out more clean-energy grants and prepares to pass a national renewable-energy standard. HSBC says that Vestas’ 30% discount to its peer group is “completely unjustifed.”>>>MORE