Analyst Constantin Hesse from Jefferies maintained a Sell rating on SMA Solar Technology and decreased the price target to €16.00 from €18.00.
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Constantin Hesse’s rating is based on a combination of factors that suggest a challenging outlook for SMA Solar Technology. The downgrade to a Sell rating reflects ongoing weak demand in both residential and commercial sectors, which is a significant concern for the company’s future performance. Additionally, there are risks associated with further impairments, indicating potential financial setbacks that could impact the company’s valuation.
Moreover, while there are restructuring measures in place, there is skepticism about their sufficiency in addressing the underlying issues. The potential for large-scale growth is hindered by reductions in US tax credits and complications related to the European grid, which add to the uncertainty. Although there is some potential in storage solutions, it remains insufficient to counterbalance the overall negative outlook for the fiscal year.