Jefferies analyst Constantin Hesse maintained a Sell rating on SMA Solar Technology today and set a price target of €16.00.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Constantin Hesse has given his Sell rating due to a combination of factors impacting SMA Solar Technology. Despite the positive news from the US Treasury guidance, which reduces regulatory uncertainty for large-scale projects, there are concerns about the company’s financial outlook. The elevated estimates for SMA’s large-scale segment are already near record levels, and there is weak demand in the HBS segment in Europe.
Hesse anticipates that further deterioration in the European market could lead to financial impairments and the need to accept excess quantities, potentially resulting in a significant negative impact on EBIT. These factors contribute to a cautious outlook, prompting the Sell rating despite the favorable regulatory environment in the US.