SMA Solar drops 9.7% after being downgraded by Jefferies

SMA Solar drops 9.7% after being downgraded by Jefferies

SMA Solar Technology AG (ETR:S92) experienced a significant decline in its stock price on Thursday, following a downgrade by Jefferies. The research firm reduced its rating from Hold to Underperform and lowered its price target to EUR16.00 from EUR18.00. The downgrade was driven by concerns over weak demand in residential and commercial & industrial (C&I) sectors for SMA Solar's products.

Jefferies cited risks of further impairments and expressed doubts about the sufficiency of SMA Solar's current restructuring measures to address its challenges. Additionally, the research firm noted that growth prospects in the large-scale segment are facing headwinds due to U.S. tax credit reductions and grid-related issues in Europe. While Jefferies acknowledged potential opportunities in energy storage, it concluded that this segment remains too small to offset the near-term pressures facing the company.

The stock price of SMA Solar dropped by 9.7% in response to the downgrade, reflecting investor concerns over the company's financial outlook. Investors will continue to monitor SMA Solar's performance and the effectiveness of its restructuring measures.

References:
1. [1] https://au.investing.com/news/analyst-ratings/jefferies-downgrades-sma-solar-stock-rating-to-underperform-on-weak-demand-93CH-3931505
2. [2] https://ca.investing.com/news/stock-market-news/first-solars-outlook-improves-amid-tariff-and-ira-uncertainty-93CH-4101435