0837 GMT - Vestas had a strong finish to 2024 and RBC Capital Markets is cautiously optimistic about its ability to deliver in 2025. RBC says the underlying historical profitability of Vestas' service business, combined with management's action plan and peer performance, provides confidence that the business can recover. RBC also expects installations in Germany to increase in 2025. With its present valuation still pointing to a 40%-50% sector discount and implying no margin uplift from 2025, the bank sees an attractive risk-reward. It expects 2025 margins near the top end of the guided 4%-7% adjusted EBIT margin range. RBC reiterates its outperform rating and trims its price target to 154 Danish kroner from 156.00 kroner. Shares rise 1.8% to 98.58 kroner. (dominic.chopping@wsj.com)
(END) Dow Jones Newswires
February 18, 2025 03:37 ET (08:37 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.