European Wind: HSBC prefers offshore suppliers over turbine OEMs

Sif Holding NV

14/12/2021 12:05

** The weakening onshore order intake year-to-date points to
negative global (ex-China) onshore demand in 2022, HSBC says,
highlighting its preference for offshore suppliers over turbine
original equipment manufacturers (OEMs)
    ** In general the brokerage expects a challenging year ahead
of European wind sector, forecasting a cyclical downturn in
2022-23 coupled with raw material and logistics headwinds
    ** It adds, however, the U.S. market could provide a macro
catalyst if the key policy support is extended  
    ** The broker sees offshore as more attractive as it seems
set for double-digit volume growth to 2030, while Germany's new
70GW target for 2045  urn:newsml:reuters.com:*:nL8N2SF5OC underlines greater enthusiasm
for offshore development
    ** There is strong order backlog visibility in the U.S.
offshore market, it adds, while high consolidation and
relatively low capacity provide supply chain optimism 
    ** HSBC retains its "buy" rating on Nexans  NEXS.PA ,
Boskalis  BOSN.AS , Prysmian  PRY.MI  and Sif  SIFG.AS  
    ** The broker downgrades German onshore turbine pure-play
Nordex  NDXG.DE  to "hold" from "buy", citing delays with the
India capacity ramp and EBITDA target pushout 
    ** It keeps "hold" on Vestas  VWS.CO  and Siemens Gamesa
 SGREN.MC  given turbine cost headwinds 


 (Reporting by Marta Frackowiak)
 ((marta.frackowiak@thomsonreuters.com))