Nordex regains stride, nearing annual peak performance
The Nordex Group, a leading player in the wind energy sector, has secured its first order from Ecuador for 19 turbines of the N149/5.X type. The order, for a wind farm located in the south of the country, is a significant step forward for Nordex's expansion in the region.
The identity of the client and the wind farm have not been disclosed, but the order is part of the reasons for the rise in Nordex's stock, as mentioned in the MDAX mid-cap index. The turbines will be installed on steel tubular towers with a hub height of 105 meters, and the first installation is scheduled for October 2026, with the wind farm expected to be operational by March 2027.
The order comes at a time when the European onshore wind market remains optimistic, according to Constantin Hesse, an analyst at Jefferies. Hesse published a study on Wednesday highlighting a positive outlook for the market after discussions with leading sales and management representatives. Competition in the market remains rational, providing a favourable environment for companies like Nordex.
Analysts at Jefferies have reaffirmed their buy recommendation for Nordex (WKN: A0D655), with the price target for the stock remaining at 25 euros. If successful, the order could retest Nordex's early August high of 23.44 euros, a significant milestone for the company.
The wind farm is expected to help reduce the risk of blackouts in Ecuador, particularly during the dry season in the Amazon region, where power supply is often strained. The wind farm is also intended to support Ecuador's power supply overall, a move that could have wide-reaching implications for the country's energy sector.
After several challenging years, Nordex is now the sector favourite in wind energy. The company's stock has performed strongly this year but has been consolidating since early August. For investors considering buying Nordex's stock, a speculative mindset is advised, given the potential for further growth in the European onshore wind market.
However, it's worth noting that the stock needs to break through the 38-day line to gain momentum. If this happens, it could signal a bullish trend for Nordex's stock, potentially leading to further gains in the coming months.
In conclusion, Nordex's first order in Ecuador is a positive development for the company and the wind energy sector as a whole. As the European onshore wind market remains optimistic, Nordex is well-positioned to capitalise on this growth, making it an attractive investment opportunity for those with a speculative mindset.
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