In a report released today, Constantin Hesse from Jefferies maintained a Hold rating on SMA Solar Technology (0NIF – Research Report), with a price target of €16.00.
Constantin Hesse has given his Hold rating due to a combination of factors affecting SMA Solar Technology. The company is expected to show improved performance in the first quarter compared to previous quarters, surpassing initial expectations. However, there is uncertainty surrounding future orders, particularly in the utility scale segment, which is anticipated to decrease following a robust second half of 2024.
Despite the potential decline in utility scale orders, there is an expected increase in residential and commercial & industrial (C&I) orders. However, this increase is not yet seen as a sign of a lasting recovery. The company is projected to maintain solid margins in large scale operations, which should help return to profitability in the first quarter. Nevertheless, due to the uncertainties in order volumes and market conditions, the Hold rating is maintained.
In another report released on April 1, Deutsche Bank also maintained a Hold rating on the stock with a €16.00 price target.