Analyst Constantin Hesse from Jefferies maintained a Hold rating on SMA Solar Technology (0NIF – Research Report) and keeping the price target at €16.00.
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Constantin Hesse has given his Hold rating due to a combination of factors affecting SMA Solar Technology. The company’s first-quarter results showed a decline in sales, although EBITDA exceeded expectations with a significant increase. Despite a strong free cash flow and an increase in net cash, the order intake saw a quarter-on-quarter decrease, particularly in large-scale projects, following strong performance in previous quarters.
Additionally, SMA Solar Technology’s forecast for fiscal year 2025 indicates that revenue is expected to be at the lower end of its guidance range, with EBITDA also anticipated to be within a conservative range. This cautious outlook is attributed to macroeconomic challenges and uncertainties related to fluctuating tariff policies. While the share price has already experienced a correction, the market may react positively to the earnings beat and strong cash flow, but the overall outlook remains cautious, justifying the Hold rating.