S&P, Nasdaq futures higher; U.S. jobs report ahead - what’s moving markets
Investing.com - TD Cowen has reduced its price target on SMA Solar Technology AG (S92:GR) to EUR18.00 from EUR20.00 while maintaining a Hold rating.
The firm cited deteriorating demand in residential and commercial & industrial (C&I) segments during the third quarter of 2025, which prompted SMA Solar to lower its 2025 revenue guidance by 3% at the midpoint. The company also significantly cut its EBITDA guidance due to one-time items.
TD Cowen views the continued weakness in Europe as a negative indicator for SolarEdge Technologies (NASDAQ:SEDG) and Enphase Energy (NASDAQ:ENPH), both of which the firm rates as Hold.
The new price target is based on 5x TD Cowen’s 2026 EV/EBITDA estimate for SMA Solar Technology. The firm noted that due to declining product backlog, second-half 2025 utility bookings will be crucial to support expectations for stable revenue in 2026.
TD Cowen also highlighted that second-quarter 2025 utility order intake declined in the U.S. as customers paused decisions due to tariff and policy uncertainty, while projecting a 10% EBITDA margin for SMA Solar in 2027 supported by cost reduction efforts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.