SMTGY - SMA Solar Technology: Still A Buy, But More Conservative Outlook
2025-04-02 08:00:00 ET
Summary
- SMA Solar Technology faces new challenges like potential US import tariffs but holds a strong position in the utility-scale inverter market.
- Despite a 19.6% YoY revenue drop in FY24, SMA's restructuring aims for €200 million EBIT improvement by FY27, with €80 million expected by FY25.
- German fiscal stimulus and increased demand for utility-scale PV systems present growth opportunities, but oversupply and competition pose risks.
- DCF analysis indicates a target price of €20.51 per share, suggesting a 35% upside, justifying a "buy" rating despite lowering from €23.75.
Since my last article on SMA Solar Technology (SMTGF)(SMTGY), although only a few months have passed, it feels like years from a geopolitical perspective. The company faces new challenges, such as the potential imposition of import tariffs in the US, but also new opportunities, such as Germany's expansive fiscal policy ....
SMA Solar Technology: Still A Buy, But More Conservative Outlook