SMA Solar shares slump as Jefferies cuts rating on low U.S. orders visibility

Sma Solar Technology AG

31/03/2025 08:17

** Shares in SMA Solar S92G.DE slump 6.8% after Jefferies downgrades the German company to "hold" from "buy", citing low order visibility in the U.S.

** The broker becomes "less constructive" on the stock, pointing to SMA utility scale business' major exposure to the U.S., mgmt's indications of a probable slowdown in orders, and limited visibility on the recovery of in home, commercial and industrial (C&I) businesses

** Jefferies adds the gap between backlog and guidance does not reassure - SMA's product backlog stands at 1.03 billion euros ($1.12 billion) vs FY guidance of 1.5-1.65 billion euros

** Jefferies says C&I would have to generate orders of at least 300-400 million euros by Q3 or early Q4 to bridge this gap, adding the current destocking cycle does not help

** Jefferies sets its PT at 20 euros, adding that "the balance sheet is solid"

($1 = 0.9229 euros)

 (Reporting by Marleen Kaesebier)

 ((Marleen.Kaesebier@thomsonreuters.com))