Vestas shares drop following CFO resignation

Investing.com -- Shares of Vestas Wind Systems (CSE:VWS ) fell sharply by over 6% following the announcement of CFO Hans Martin Smith's resignation. 

Smith, who has been with the Danish wind turbine maker for two decades and served as CFO since March 2022, is set to step down by the end of the year.

The company said that Rasmus Gram, currently Senior Vice President and Head of Group Financial Performance, will step in as interim CFO. 

Meanwhile, the search for a permanent replacement is underway, with a preference for external candidates. 

“Abrupt timing, though overall change should help support investor confidence,” said analysts at RBC Capital Markets in a note. 

The resignation comes amid challenging market conditions for renewable energy firms, adding to uncertainties surrounding Vestas’s financial performance and strategic direction.

RBC added that, given the operational challenges in Vestas’s Service segment and the share price fluctuations throughout 2024, the CFO change should not come as a surprise to investors. 

The analysts believe that bringing in an external candidate could prove beneficial in rebuilding market confidence. 

While the mid-term growth drivers for Vestas remain compelling, RBC said that the company’s near-term performance in addressing issues within its Service division will be critical in shaping investor sentiment.

Source: Investing.com