The share price of Danish wind turbine manufacturer Vestas fell to its lowest level in eight months on Monday.
Monday’s 6.4% drop to DKK 157.60 is linked to the increasing likelihood of a victory for Donald Trump after the weekend’s failed assassination attempt against the Republican candidate for the US presidential election in November.
If Trump becomes president again, it is considered bad news for shares in the green transition, which in the Danish stock market also includes wind farm developer Ørsted, which fell 5.5% to DKK 391.40 on Monday.
”There’s no doubt that Trump will do what he can to make life harder for the two companies and for the industry. However, he probably can’t ruin much for them in the short term,” Jacob Pedersen, head of equity research at Sydbank, tells MarketWire.
”What has been passed for onshore wind has already been passed in Congress, and several Republican states are also dependent on those jobs,” he adds.
Today’s drop for Vestas shares means it is now down 26.5% this year, making it the worst performing stock among the 24 companies in the elite Danish C25 index.
Analysts are generally positive about the potential of the stock. According to Bloomberg News, out of 35 financial houses covering the stock, 21 recommend ”buy”, 11 advise ”hold”, while the remaining four recommend ”sell”.
The average 12-month price target is DKK 216.81, indicating a potential upside of almost 38%.
Despite today’s drop for Ørsted, the energy company’s share price has risen 4.6% this year, which is also an underperformance compared to the overall C25 index, which has risen 7.8%.
(English edit by Kristoffer Grønbæk)
