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 35.00 price target.

SFC has reported preliminary 2022 figures and held a conference call. Revenue amounted to €85.2m and topped both company guidance and our forecast. Adjusted EBITDA was €8.2m and thus close to the upper guidance end of €8.5m and 8% below our forecast of €8.9m. For 2023, SFC is guiding towards sales in the range €103m to €111m and adjusted EBITDA of €8.9m – 14.1m. Given the high order backlog of €74m (+143% y/y) and unabated demand for SFC’s fuel cells, we stick to our €114m revenue forecast. However, we have lowered our 2023 EBITDA estimate as we expect higher costs for regional and technology base expansion. In 2022, SFC added 100+ staff and is looking for 70+ employees this year. Based on revised forecasts, an updated DCF model yields an unchanged price target of €35. We confirm our Buy recommendation.