Commerzbank keeps “hold” on SMA Solar, affirms EUR 43 target
Dec 21, 2011 - Commerzbank today reiterated its “hold” recommendation and EUR 43 share price target on German solar inverter maker SMA Solar Technology (ETR:S92).
Analyst Lauren Licuanan referred to a report in the Financial Times Deutschland, according to which German solar technology producer Conergy AG (ETR:CGY) planned to sell its solar inverters unit Voltwerk to local industrial company Bosch. The move is not surprising, since Bosch has previously expressed its interest in entering the segment, the expert wrote in a study on Wednesday.
However, conglomerates like Bosch will account for growing competition in the sector, which gives Licuanan reasons to believe that SMA Solar’s margins will come under significant pressure in 2012.
At 1706 CET today SMA Solar's share lost 0.35% to EUR 39.860 on Xetra.