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BULL VESTAS X5 VON

  • Symbol BULL VESTAS X5 VON
  • ISIN DE000VS0AKS3
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5X Long Index linked to Vestas Wind Systems ASDKK 
Please note that this is an indication.

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Vestas

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The Danish wind power company Vestas has currently a positive momentum. Turnover in Q2/15 gained 30% to 1.75 billion EUR. Profit was at 125 Mio EUR. This corresponds to a 33% increase in profit. Furthermore the orderbooks are filled. End of June, Vestas has orders for wind power systems of more than 8.5 billion EUR. Highly profitable service contracts were closed for more than 8 billion EUR. The management announced that Vestas wants to increase turnover in 2015 from 6.9 billion up to 7.5 billion EUR. Margin should be improved from 8.1% to 8.5%.

A better market environment for wind power as well as a comprehensive internal saving program which was launched during the crisis years concluded  those figures. Thus, analysts are quite positive on the stock. Bloomberg consensus rating is 3.86
and therefore between hold and buy. Currently, the 12-month target price in Vestas is 401.67 DKK. Also compared to the global market, wind power generated an outperformance in 2015. According to Bloomberg “wind energy hast risen 22.4%
this year, outperforming the Bloomberg World Index, which has declined 7.9%”. Wind turbine orders alone increased 35.2% year-over-year with biggest growth rates in U.S. and Europe.

However, Chinas market share declines. Compared to 2008 (10%), Vestas market share in China was only 1% (2014). This is mainly linked to upcoming local players. The local manufacturing industry could also be a global competitor to Vestas and investors have to take into account potential intense competition like we have seen in the solar industry.