Quality issues to be 'recurring theme' for wind industry | Deutsche Bank lowers Vestas target price - Recharge
Quality issues to be 'recurring theme' for wind industry | Deutsche Bank lowers Vestas target price | Recharge
Deutsche Bank has lowered its target price for Danish wind turbine giant Vestas, which last week posted a net loss of €115m ($126m) in the second quarter of this year, almost unchanged from the same period last year.
“While investors can breathe a sigh of relief as Vestas did not add to the headlines on turbine quality issues, the troubles impacting the industry are clearly not over,” analyst Gael de-Bray said in a note to investors.
“Quality topics have [been] and are likely to remain a recurring theme that pops up sporadically and uncertainty is likely to weigh on the shares in the near term.”
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”