Jefferies downgrades SMA Solar stock rating to Underperform on weak demand

Published 17/07/2025, 18:24
Jefferies downgrades SMA Solar stock rating to Underperform on weak demand

Investing.com - Jefferies downgraded SMA Solar Technology AG (ETR:S92) from Hold to Underperform on Thursday, while lowering its price target to EUR16.00 from EUR18.00.

The downgrade comes amid continued weakness in residential and commercial & industrial (C&I) demand for the German solar equipment manufacturer’s products.

Jefferies cited risks of further impairments and expressed concerns that SMA Solar’s current restructuring measures may not be sufficient to address its challenges.

The research firm also noted that growth prospects in the large-scale segment face headwinds from U.S. tax credit reductions and grid-related issues in Europe.

While Jefferies acknowledged potential opportunities in energy storage, it concluded this segment remains too small to offset the near-term pressures facing the company.

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