Constantin Hesse, an analyst from Jefferies, maintained the Sell rating on SMA Solar Technology. The associated price target remains the same with €16.00.
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Constantin Hesse has given his Sell rating due to a combination of factors impacting SMA Solar Technology’s financial outlook. The company has issued a profit warning for FY25, indicating a significant decline in expected EBITDA, now forecasted to be between -€80m and -€30m, compared to previous estimates of €70m to €80m. This adjustment reflects a substantial deviation from market consensus, highlighting the company’s struggles in maintaining profitability.
Additionally, SMA Solar Technology anticipates negative one-time effects amounting to €170-220m, primarily driven by inventory devaluations and impairments within the Home and Business Solutions division. The need for restructuring measures further underscores the challenges faced by the company. Despite some temporary relief from favorable US Treasury guidance, the overall outlook remains bleak, with expected impacts on future years, prompting the Sell recommendation.