First Berlin Equity Research has published a research update on SFC Energy AG (ISIN: DE0007568578). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and maintained his EUR 26.00 price target.

Abstract
SFC has published final Q2 figures and held a conference call. Final figures matched preliminary numbers. The more detailed final results showed that both the group (+14%) and the Clean Energy segment (+17%) are still growing. We believe that the structural growth drivers (civil security & defence) are still intact and will return SFC to a double-digit growth path in 2026E. NATO countries’ defence budgets have been increased and will be released in the coming months. This should result in further defence orders next year. The infrastructure business could quickly develop into a new growth sector with SFC delivering fuel cell-based energy solutions for construction sites. The 60 fuel cells recently delivered to a bridge construction site could be the blueprint for many similar bridge projects, as ca. 4,000 bridges in Germany need urgent refurbishment. Strengthening headwinds (exchange rates, tariffs, delay of Indian defence project) prompted the July profit warning, and we now expect a rather weak Q3 but a return to double-digit growth in Q4. An updated DCF model yields an unchanged €26 price target. We confirm our Buy recommendation (upside: 62%).