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 34.00 price target.

SFC has published mid-term guidance, which targets 2028 revenue of €400m – €500m. An organic 2022-2026 CAGR of almost 30% should result in revenue of ca. €400m, and the remaining €100m could come from M&A. SFC is aiming for an adjusted EBITDA margin of >15% before 2028 (2022: revenue of €85m, adjusted EBITDA margin of 9.6%). The main organic growth drivers are regional expansion, especially in Asia and North America, and a significant increase in sales of hydrogen fuel cells. SFC’s mid-term guidance is roughly in line with our expectations. An updated DCF model yields an unchanged price target of €34. We confirm our Buy rating.