SMA Solar slumps after Jefferies downgrade
The recovery of SMA Solar that started at the beginning of March $S92 (+3,11%)which was boosted by the planned infrastructure investments in Germany, is now showing clear signs of weakness. On Monday, the share price of the solar technology manufacturer fell by 4.86% to 16.84 euros, its lowest level since the beginning of March. This is already the third trading day in a row with heavy losses. The share price has now retreated by a third from the annual high reached in mid-March. The original annual gain of a good 20 percent has thus been greatly reduced. Jefferies, the investment house, withdrew its buy recommendation on Monday, which put further pressure on the share price. Two weeks ago, the share price appeared to be at a high since August, with an annual gain of up to 82%. Analyst Constantin Hesse attributed the downgrade to the reduced predictability of order development at the inverter manufacturer, in particular due to more cautious demand from US customers. Hesse would like to wait and see until the order situation stabilizes. In 2024, SMA Solar was already the biggest loser in the small-cap index SDax, with a drop of almost 80%. Competition from China and high inventories in particular had caused the company problems. In mid-June, a drastic sales and profit warning led to a massive fall in the share price. In November, the North Hessian company lowered its targets once again and announced the reduction of 1,100 jobs, which brought the share price to its lowest level since 2015.
HOCHTIEF share price setback: gains evaporate after record high
The HOCHTIEF share price $HOT (+2,03%) are living up to the company name these days. After reaching a record high in mid-March on the back of hopes for billions in German infrastructure funding, the share price has now entered a phase of disillusionment, falling for four weeks. On Monday, it fell by almost four percent on XETRA after Jefferies dropped its buy recommendation. The price gains that were achieved after the financial package of the CDU/CSU and SPD have thus almost disappeared again. The approval of the financial package by the Bundestag and Bundesrat around a week and a half ago did not provide any new momentum for the share, which has lost momentum after its rally. In his analysis, Graham Hunt from Jefferies limited the significance of the German infrastructure billions for HOCHTIEF. He noted that the company generates around half of its profits in the USA, while only three percent are generated in Germany. In his sector study, he recommends companies with a stronger focus on Europe, such as Balfour Beatty and Eiffage, as they offer better opportunities and an attractive free cash flow yield. Hunt also sees the priced-in fantasy for the construction of AI data centers as a risk to HOCHTIEF's high valuation.
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