Analyst Constantin Hesse of Jefferies maintained a Buy rating on Nordex, retaining the price target of €21.00.
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Constantin Hesse has given his Buy rating due to a combination of factors including Nordex’s strong financial performance in the second quarter. The company exceeded expectations with sales and earnings metrics significantly ahead of forecasts, showcasing robust financial health. Notably, Nordex reported a strong free cash flow, which was a pleasant surprise despite some working capital outflow, indicating potential for even higher free cash flow in the future.
Additionally, Nordex’s net cash position reached a record high, and the order book is at an impressive level, providing solid visibility into future revenues. The management’s optimism about continued strong order momentum, particularly from Europe, further supports the positive outlook. Despite recent stock price increases, the solid financial results and positive future projections justify the Buy rating, as they suggest continued support for the stock’s performance.
In another report released on July 14, Citi also maintained a Buy rating on the stock with a €22.00 price target.