Nordex share: Wind power giant on the rise after stormy times

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Nordex shares have divided investors in recent months and years.

The wind power specialist has gained 90 percent, or almost 100 percent, since the beginning of the year. That's impressive. Nordex continues to secure new major orders. However, the past has shown significant price volatility. The current price is €21.26. This makes the share attractive again and, given the technical charts, also appears promising. Nordex is heavily dependent on the European market. This brings with it opportunities and risks. New orders from Sweden and Schleswig-Holstein are good signs. Has Nordex achieved a lasting turnaround, or are the shares falling again as before?

Strong business

Things are going really well for Nordex at the moment. The Hamburg-based company is securing one major order after another, demonstrating its ability to deliver. The latest deal is with Trianel Renewable Energies. It's for a 46-megawatt wind farm in Schleswig-Holstein. Nordex is installing eight turbines there, along with a 20-year service contract. This not only generates significant immediate cash flow but also secures future income. The figures are clear: Nordex generates revenues of €7.30 billion. Profits amount to €8.84 million. Management expects revenues of up to €7.9 billion for 2025. Nordex has installed over 57 gigawatts of capacity worldwide, making it a major and important player. Order books are continually filling up. Projects like the Swedish wind farms with a total capacity of 115 megawatts demonstrate that Nordex is also in demand internationally. This diversification within Europe reduces dependence on individual markets and increases planning security.

Chart technology

From a technical perspective, Nordex shares are currently performing strongly. The RSI value of 63 indicates that the stock is not overbought. Recently, it was well above 70 in the upper range, which indicated overbought conditions. Currently, there is room and scope to continue the uptrend. The impressive rally since the beginning of the year has surprised many investors and attracted new buyers. While 2019 saw a gain of over 60 percent, 2021 saw a severe setback of almost 40 percent. Long-term investors have had to endure quite a bit with Nordex. It is all the more encouraging for them that the technical indicators now indicate the end of the breather after the steep rise. The two SMAs (50 and 200) are below the current price, thus pointing to further upside in the medium and long term. Theoretically, however, a consolidation towards the EUR 20 level is still conceivable, and this would be absolutely no problem for the fundamentally positive overall chart picture.

Europe focus as both an opportunity and a risk

Nordex is heavily invested in Europe. This has advantages and disadvantages. The EU wants to promote green energy. Member states have ambitious climate targets. This helps Nordex. The energy transition is ensuring steady demand for wind turbines, but this strategy also carries risks. Policy can change, and then Nordex suffers immediately. If expansion plans are postponed, it hurts the business, subsidies disappear, and then things become difficult. Nordex is heavily dependent on government support, and investors should be aware of this. Chinese companies also want to move to Europe. This makes competition tougher, but the Asians are having problems. Ming Yang Smart Energy has withdrawn from a North Sea project. Siemens Gamesa took over instead. This shows that Chinese manufacturers are still struggling in Europe.

What to do?

Nordex presents itself as an exciting investment with potential. Its operating figures are encouraging, its order book is developing positively, and the company is benefiting from the energy transition megatrend. Recent major orders underscore the Group's market position. Nordex certainly offers significant opportunities for risk-averse investors seeking to profit from the energy transition. The fundamental strength of its business model and the continuously growing demand for wind power speak in favor of the company. One could try to gain a foothold around the €20 mark and secure this with a stop price of, say, €17. In the longer term, Nordex should target the €25-28 region.

Author: Felix Goldbach, FinanzNachrichten editorial team

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