Promising Outlook for Nordex: Strong Orders and Attractive Valuation Drive Buy Rating

Constantin Hesse, an analyst from Jefferies, maintained the Buy rating on Nordex. The associated price target remains the same with €21.00.

Constantin Hesse has given his Buy rating due to a combination of factors that suggest a promising outlook for Nordex. The company is expected to have a robust second quarter, with around 2 gigawatts in orders primarily from Germany and Turkey, maintaining stable pricing. Although revenue growth might be slower compared to previous quarters, there is an anticipated improvement in profit margins, which should bolster cash flow.
Additionally, while decisions regarding capital allocation might be deferred to the fourth quarter, the overall cash position of the company remains strong. The valuation of Nordex, at 6 times the expected 2026 EV/EBITDA, is considered attractive, making it a compelling investment opportunity.