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 31.00 price target.

Abstract
SFC Energy has reported preliminary 2024 KPIs and held a conference call. 2024 was a very successful year for the company. This is reflected in strong growth (+23% y/y), rising profitability (AEBITDA margin: 15.2% versus 12.8% in 2023). Additionally, bold strategic moves significantly strengthened SFC’s global market leading position in direct methanol fuel cell (DMFC) technology. SFC has ramped up its own membrane electrode assembly (MEA) production in the UK. MEA technology, which is decisive for DMFC costs, performance, and longevity, is now in SFC’s own hands. In Romania, the company built a new production site and ramped up FC production. SFC’s Romanian operation will in the future be the company’s largest fuel cell production site. SFC’s 2025 guidance (revenue growth: 11-25%, AEBITDA margin increasing to at least 15.4%) confirms our positive view. We believe that the disruptive change in US foreign & defence policy will result in significantly higher European defence spending, which will increase demand for SFC’s defence & public security products. This area already prospered in 2024 (+60%). SFC plans to establish local production in the US to minimise the effect of potential tariffs and to enter the US defence market. With its global footprint (North America, Europe, Asia), its unrivalled DMFC technology, and mature product range, we believe that the company is excellently positioned for further profitable growth. Based on slightly higher earnings forecasts, our updated DCF model yields an unchanged €31 price target (upside almost 70%). In our view, SFC, the global market leader in DMFC, is attractively valued with 2026E consensus EV/EBIT of 10x. We confirm our Buy recommendation.