JPM | Industrial Strength Morning Messages: Deal worries, Vestas, Sika, Fujikura (Prysmian)

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JPM | Industrial Strength Morning Messages: Deal worries, Vestas, Sika, Fujikura (Prysmian)

s in the near term and note that management appear to be adopting a more pro-active approach to

pricing while volumes are holding up. There is also a full feedback note below. Holcim was seen as the most bullish - with

positive commentary around European pricing - and the longer term European consolidation theme which supported both

Holcim and Heidelberg shares last year. Light side volumes and self help (both portfolio and cost saves) should deliver a

decent set of Q2 results.

• VESTAS: Akash has placed the shares on Positive Catalyst Watch this morning. Full details are below but perhaps the most

important comment comes on the contract asset - with management pointing to ongoing recovery in Service margins on the

back of lower costs and improved LPF. This reduces the risk of a contract asset write off in this business - and also reduces the

risk of a downgrade to margin outlook in the near term.

Pan European Industrials Research

1. Vestas - JPM Industrial conference feedback confirms attractive setup - placing on positive CW- Akash Gupta here We

hosted Vestas CFO Jacob Larsen at our Industrial conference this week and came away reassured on our investment case.

There are several positives in the story that are not reflected in the share price, in our view, and this creates an attractive near-

term setup. First, onshore demand is strong and the pipeline in the US, including conditional orders, is at all-time high levels

despite political uncertainty, while Europe is developing well. Second, the company is increasingly confident on de-risking

V236 offshore turbine manufacturing ramp up, and is now making good progress on installations, with the first two projects