On Monday, Deutsche Bank (ETR:DBKGn) adjusted its financial outlook for Nordex SE, a wind turbine manufacturer, by reducing its price target to €16.00 from the previously set €17.00. Despite the lower price target, the firm has maintained a Buy rating on the company's shares.
Nordex SE is anticipated to release its second-quarter financial results on July 25th. The Deutsche Bank analyst pointed out that the Q2 order intake is expected to be considerably lower than the market consensus, attributing this to some orders having been moved to the first quarter. The forecast for the second quarter adjusted EBIT (earnings before interest and taxes) is €0 million, with improved revenue and operating leverage being counterbalanced by the effects of the legacy backlog.
The analyst emphasized the importance of Nordex clearing its low-margin backlog, noting that while this is key to the investment case for the company, it will likely limit margin expansion in the second quarter. The adjustment in the price target to €16 reflects these considerations while maintaining a positive outlook on the stock with a Buy rating.
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