FRANKFURT (dpa-AFX) - A new buy recommendation from Goldman Sachs gave Nordex a significant share price recovery on Tuesday. In the late morning, the shares of the wind turbine manufacturer rose by 3.6 percent to EUR 9.298, placing them among the top of the MDax.

At the beginning of the week, a downgrade by Metzler had sent Nordex shares to their lowest level since October 2022 at EUR 8.616. The price drop of more than ten percent since the beginning of the year means that Nordex is one of the bottom performers in the mid-cap index, which has lost five percent in the same period.

The US investment bank Goldman Sachs upgraded Nordex from "Neutral" to "Buy". The share has a whopping 61 percent upside to the still valid price target of EUR 15. Analyst Ajay Patel believes that the company can increase its profitability back to the 2014 level. More advantageous pricing, a better interplay between supply and demand and lower costs should contribute to a recovery in margins. Taken together, this should result in higher profits and a stronger balance sheet.

On Monday, meanwhile, Metzler Bank downgraded the shares from "buy" to "hold" and lowered the target price from 14.50 to 9.10 euros. Analyst Guido Hoymann cited the falling energy prices, which reduced the revenue pool from which the sector companies could draw.

Overall, the sentiment among analysts tends to favor Goldman Sachs' assessment. Of the analysts surveyed by the US financial news agency Bloomberg, ten issued a positive recommendation of "buy" or "outperform". This contrasts with five neutral assessments. None of the renowned analysts have issued a sell recommendation./gl/tih/stk