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On Thursday, Deutsche Bank (ETR:DBKGn) analyst Mengxian Sun increased the price target on SMA Solar Technology AG (S92:GR) shares to €19.00, up from the previous €16.00, while maintaining a Hold rating on the stock. The adjustment follows the company’s first-quarter 2025 financial results, which were released last week.
The results revealed a mixed performance, with SMA Solar surpassing expectations but attributing the success to one-time factors. Despite this, the company is experiencing hesitancy among customers to place new orders, which is believed to be a reaction to the current unstable political climate. This trend was particularly noticeable in the company’s first-quarter order intake figures from the United States.
SMA Solar’s order intake in the first quarter of 2025 fell to €266 million, a significant drop from €387 million in the fourth quarter of 2024. The Home and Commercial & Industrial (C&I) segments showed slight improvements, but the Large Scale Projects & Solutions (LS&P) segment saw its order intake halve from €377 million in the last quarter of 2024 to €181 million in the first quarter of 2025.
The decline in order intake, especially in the LS&P segment, underscores the challenges SMA Solar faces amid the current geopolitical uncertainties. The company’s ability to navigate through these headwinds remains critical to its performance in the upcoming quarters.
As investors digest the implications of the new price target and the company’s recent performance, SMA Solar’s stock will continue to be watched closely in the market. The updated price target reflects a cautious optimism, balancing the company’s recent earnings beat with the broader concerns affecting customer order patterns.
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