Deutsche Bank has upgraded its rating on SMA Solar Technology to Buy from Hold, following the German solar inverter manufacturer's stronger-than-expected second-quarter results and an upward revision to its full-year outlook. The bank cited improved order intake and a brighter demand picture across key markets as reasons for the upgrade.
The upgrade comes after SMA Solar reported a 12% rise in quarterly revenue compared to the same period last year, driven by robust sales in Europe and North America. The company also lifted its 2026 revenue guidance to between €1.5bn and €1.6bn, up from a previous range of €1.4bn to €1.5bn, reflecting a faster-than-anticipated recovery in the solar installation market.
Shares in SMA Solar rose 4.3% on the Frankfurt Stock Exchange following the announcement, outperforming the broader DAX index, which was flat on the day. The positive sentiment spilled over into the wider renewable energy sector, with peers such as SolarEdge and Enphase Energy also seeing modest gains in European trading.
Analysts at Deutsche Bank noted that SMA Solar's improved margins and cost controls have strengthened its competitive position against Asian rivals. 'The company is benefiting from a stabilisation in European solar demand and a rebound in US commercial projects,' they wrote in a note to clients. The bank also highlighted that SMA Solar's new product launches in the residential storage segment are gaining traction.
For UK investors and pension holders with exposure to renewable energy funds or European equity trackers, the upgrade underscores a broader recovery in the solar supply chain after a period of inventory overhang and pricing pressure. The FTSE 100-listed renewable infrastructure funds, such as Greencoat UK Wind and The Renewables Infrastructure Group, may see indirect benefits if the positive sentiment extends to the wider clean energy sector.