EU and US could reach trade deal this weekend - Reuters
On Wednesday, Berenberg initiated coverage on Nordex (ETR:NDXG) SE (NDX1:GR) (OTC: NRDXF), a German onshore wind turbine manufacturer, assigning a Buy rating and setting a price target of €19.00 per share. The firm’s analysis acknowledges the recent challenges faced by Nordex, including a volatile supply chain, weaker service margins, and lower volumes. Despite these hurdles, Berenberg’s outlook is optimistic, highlighting the company’s strategic shift towards improving its EBITDA margins to approximately 8% in the medium term.
Nordex’s strategy to enhance profitability is expected to be driven by sustained order intake. Berenberg points out that Nordex achieved a record level of new orders in 2024 and anticipates an even stronger performance in 2025, with new orders projected to exceed 8.5 gigawatts. This growth trajectory is seen as a pivotal factor in the company’s future success.
The recent pullback in Nordex’s share price has led Berenberg to consider the stock’s valuation as undemanding. The firm’s position suggests that the current market price does not fully reflect Nordex’s potential, especially considering the anticipated improvement in the company’s financial metrics.
Berenberg’s initiation of coverage and the establishment of a price target is based on the belief that the negative factors previously affecting Nordex’s performance are subsiding. The firm’s positive stance is rooted in the expectation that Nordex will capitalize on its strong order book to deliver on its financial targets.
Nordex’s focus on increasing its EBITDA margin is a central theme in Berenberg’s analysis. The firm underscores the importance of this objective, viewing it as the key to unlocking the company’s value and enhancing shareholder returns over the coming years.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.