SMA Solar Technology (0NIF – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Constantin Hesse from Jefferies maintained a Buy rating on the stock and has a €20.00 price target.
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Constantin Hesse’s rating is based on several factors that contribute to a positive outlook for SMA Solar Technology. Despite the anticipation of a weaker-than-expected performance in the fourth quarter, Hesse foresees a strong influx of large-scale orders that could exceed current market expectations. This robust order intake is expected to maintain the order book at approximately €1.1 billion, which offers considerable visibility into 2025.
Additionally, the limited capital expenditures are projected to ensure a healthy free cash flow for the year. With the current share price already reflecting much of the negative news, the stock is trading at a low EV/EBITDA multiple of 4.6 times on a one-year forward basis, which, coupled with low market expectations for 2025, suggests an opportunity for the stock to be re-evaluated positively.
Hesse covers the Industrials sector, focusing on stocks such as Nordex, PowerCell Sweden AB, and NEL ASA. According to TipRanks, Hesse has an average return of -9.6% and a 33.88% success rate on recommended stocks.