First Berlin – SFC Energy AG Research Update (08/05/2018)

First Berlin Equity Research has published a research update on SFC Energy AG (ISIN: DE0007568578). Analyst Dr. Karsten von Blumenthal reiterated his ADD rating and increased the price target from EUR 9.40 to EUR 9.50.

SFC Energy reported Q1 figures and held a conference call. Sales grew 28% due mainly to the delivery of a large German army contract. EBIT was positive at €0.7m (Q1/17: €-0.8m). The net result amounted to €0.3m. Given the strong Q1 results and the high order backlog (€16.9m, +5% y/y), we see SFC well on track to reach its 2018 guidance of €60-64m sales and significantly improved EBIT. An updated DCF model yields a slightly higher price target of €9.50 (previously: €9.40). We reiterate our Add rating.