Analyst Constantin Hesse from Jefferies maintained a Buy rating on SMA Solar Technology (0NIF – Research Report) and keeping the price target at €20.00.
Constantin Hesse has given his Buy rating due to a combination of factors influencing SMA Solar Technology’s financial outlook. Despite a weaker than expected Q4 performance, largely impacted by reduced sales in the Home and C&I segments and increased costs, the company’s sales exceeded consensus expectations by 19%. This indicates a robust demand for their large-scale systems, as evidenced by the strong order intake of approximately €400 million, similar to Q3 levels.
Furthermore, the company’s product order backlog is substantial, ending the year at €1.03 billion, which supports a positive future outlook. Although the FY25 guidance suggests a top-line growth of 6%, it also indicates a potential EBITDA shortfall of 14% at the midpoint. However, the restructuring program initiated in September 2024 is expected to yield significant cost savings and improve earnings in the Home and C&I sectors by 2025, providing a strategic pathway for financial improvement. These factors collectively underpin Hesse’s optimistic Buy rating for the stock.