SMA Solar Technology, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Constantin Hesse from Jefferies maintained a Sell rating on the stock and has a €16.00 price target.
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Constantin Hesse has given his Sell rating due to a combination of factors impacting SMA Solar Technology’s financial performance. The company’s preliminary second-quarter results fell significantly short of market expectations, with an EBITDA of €-15.5 million compared to the consensus of €-4 million, and an EBIT of €-30.4 million versus the expected €-19 million. This underperformance was largely attributed to a substantial inventory impairment of €-46.8 million in the Home and Business Solutions division, which suggests lower than anticipated operating profitability.
Furthermore, the lack of commentary on the fiscal year 2025 guidance raises concerns, as the current projections imply a considerable increase in sales and EBIT in the second half of the year. While there is some support from the existing backlog, there is caution regarding the order intake, which could pressure estimates for 2026. These factors collectively contribute to the cautious outlook and the decision to rate the stock as a Sell.