Update shared on 25 Nov 2025
Fair value Increased 26%Analysts have raised their price target for SMA Solar Technology from €18.80 to €23.60, citing improved profitability forecasts as well as confidence in continued cost savings and solid order momentum.
Analyst Commentary
Bullish Takeaways- Bullish analysts have upgraded their outlook for SMA Solar, citing a rising trajectory in profitability that is expected to play out over the next several years.
- Ongoing cost savings initiatives are seen as a structural advantage, supporting improved margins and financial flexibility.
- Continued elevated order intake in the large-scale segment is contributing to stronger backlog and expectations for robust future growth.
- Recent price target increases reflect the market’s confidence in the company’s ability to execute effectively and benefit from sector tailwinds.
- Cautious analysts warn that strong order momentum could be temporary, pointing to heightened uncertainty in key international markets such as the United States.
- Price target reductions and Hold ratings persist among some investors who remain wary of future guidance following recent profit warnings and short-term volatility in share price.
- Some concern remains regarding the sustainability of high order volumes, given the broader macroeconomic landscape and changing policy environments.
- Mixed analyst sentiment indicates that while recent operational improvements are promising, execution risks still need to be closely monitored.
What's in the News
- SMA Solar Technology AG issued earnings guidance for fiscal year 2025, projecting sales between €1,450 million and €1,500 million. This compares to €1,530 million in 2024 (Key Developments).
- The company lowered its previous 2025 sales guidance. It now forecasts sales between €1,450 million and €1,500 million, down from the prior range of €1,500 million to €1,550 million (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has increased from €18.80 to €23.60, marking a notable upward revision in expected fair value.
- Discount Rate has declined slightly from 7.37% to 7.14%. This indicates a modestly lower implied risk profile.
- Revenue Growth expectations have moderated, decreasing from 2.21% to 1.69% year-over-year.
- Net Profit Margin projections have improved, rising from 5.60% to 7.79%.
- Future P/E ratio estimate has dropped from 9.09x to 7.51x. This reflects more attractive relative valuation based on anticipated earnings.
Disclaimer
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