Analyst Constantin Hesse from Jefferies maintained a Buy rating on Nordex (NRDXF – Research Report) and keeping the price target at €21.00.
Constantin Hesse has given his Buy rating due to a combination of factors that highlight Nordex’s strong financial performance despite a sales miss. Although the company’s Q1 sales were lower than expected, their profitability and free cash flow (FCF) exceeded market expectations. The EBITDA and EBIT margins were slightly ahead of consensus, and the FCF was notably positive, contrasting with the anticipated negative figures, largely due to effective working capital management and reduced capital expenditures.
Furthermore, Nordex’s strong order intake of 2.2GW has elevated their project order book to a record €8.25 billion, ensuring robust future visibility. The management’s confirmation of FY25 guidance and their optimistic outlook on maintaining last year’s order levels, particularly with significant contributions from Europe, also underpin the positive sentiment. These factors collectively suggest a promising outlook for Nordex, justifying the Buy rating despite the initial sales shortfall.
In another report released on April 10, Deutsche Bank also maintained a Buy rating on the stock with a €19.00 price target.