Constantin Hesse, an analyst from Jefferies, maintained the Hold rating on SMA Solar Technology. The associated price target remains the same with €22.00.
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Constantin Hesse has given his Hold rating due to a combination of factors related to SMA Solar Technology’s recent performance and future outlook. The company’s Q3 results aligned with expectations, particularly in terms of profit and loss, which suggests stability in its financial performance. However, the standout aspect was the impressive order intake, especially in the large-scale segment, which reached a record €460 million. This indicates strong demand in certain areas, although the Home Business Segment (HBS) showed weaker demand.
Despite the positive momentum in order intake and a solid free cash flow position, the company faces challenges such as one-off impacts on EBITDA due to write-offs and impairments. These factors, combined with the mixed performance across different segments, suggest a cautious approach. While the recent rally in shares might continue, the focus will remain on maintaining order intake momentum and achieving potential cost savings in the future. Thus, the Hold rating reflects a balanced view of the company’s current strengths and the uncertainties it faces.
Hesse covers the Technology sector, focusing on stocks such as SMA Solar Technology, PVA TePla, and Siltronic. According to TipRanks, Hesse has an average return of 4.2% and a 45.18% success rate on recommended stocks.
In another report released on October 28, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a €27.00 price target.