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Strong Growth in Large-Scale Segment Drives Buy Rating for SMA Solar Technology

Strong Growth in Large-Scale Segment Drives Buy Rating for SMA Solar Technology

Constantin Hesse, an analyst from Jefferies, maintained the Buy rating on SMA Solar Technology (0NIFResearch Report). The associated price target remains the same with €20.00.

Constantin Hesse has given his Buy rating due to a combination of factors, primarily focusing on the strong performance and potential of SMA Solar Technology’s large-scale segment. Despite challenges in the Home and Commercial & Industrial (C&I) sectors, which saw significant revenue declines, the large-scale segment demonstrated robust growth with a 26% increase in revenue to €411.8 million.
The solid order intake of €371 million, driven by the large-scale projects, underscores the company’s ability to capitalize on opportunities in this area, even as other segments face difficulties. Hesse acknowledges the impact of inventory write-downs and restructuring provisions on profitability but emphasizes the potential for recovery and growth, particularly in the large-scale segment, which remains a key driver for the company’s future success.

According to TipRanks, Hesse is an analyst with an average return of -7.8% and a 40.41% success rate. Hesse covers the Industrials sector, focusing on stocks such as Nordex, NEL ASA, and PowerCell Sweden AB.

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