In a report released on September 7, Constantin Hesse from Jefferies maintained a Hold rating on SMA Solar Technology, with a price target of €16.00.
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Constantin Hesse has given his Hold rating due to a combination of factors impacting SMA Solar Technology. The strategic partnership with Create Energy to produce next-generation inverters and Power Skid solutions in the US is a positive development. This collaboration is expected to enhance SMA’s competitive edge by reducing tariffs and benefiting from tax incentives under the revised Inflation Reduction Act. The move to localize production is anticipated to shorten lead times and potentially increase profitability through manufacturing tax credits.
However, despite these strategic advantages, there are concerns that temper the outlook. The demand in SMA’s Home and Business Solutions segment remains weak, which affects the company’s profitability projections for 2025 and limits margin visibility for 2026. Additionally, the slowdown in order momentum for large-scale projects due to regulatory uncertainties adds a layer of caution. A more favorable regulatory outcome and an increase in order momentum could lead to a more optimistic view in the future.
According to TipRanks, Hesse is an analyst with an average return of -1.2% and a 45.66% success rate. Hesse covers the Technology sector, focusing on stocks such as SMA Solar Technology, PVA TePla, and Siltronic.
In another report released on September 6, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a €18.00 price target.