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 decreased the price target from EUR 41.00 to EUR 37.00.
SFC placed ca. 2.9m shares at €19.50 generating proceeds of €56m. Given the challenging capital markets environment, we view the successful completion as a clear sign that investors believe in SFC’s growth story despite the difficult macro-economic environment (high inflation, looming recession, low consumer confidence, supply chain disruptions). SFC will use the proceeds, approx. one third each, (1) to foster regional and technological expansion, (2) accelerate the development of products and solutions, and (3) for external growth opportunities. The company now has a very strong cash position (Q1/22: €20m + €56m = €76m) and equity of ca. €105m (Q1/22: €49m + €56m). We stick to our growth forecast (2021-24 CAGR: 37%), which does not entail external growth. The dilutive effect of the capital increase results in a lower price target of €37 (previously: €41). We confirm our Buy recommendation.