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 37.00 to EUR 35.00.

Abstract
SFC has reported very strong Q3 figures, which topped our forecasts. Q3 sales grew 67% y/y to €25.6m and adjusted EBITDA was up 81% y/y at €4.3m. The company is now targeting the upper end of full year sales guidance (€81m – €83m) and has raised adjusted EBIT guidance to €2.6m to €3.6m (previously: €1.6m to €2.9m). The 9M order intake was up 47% y/y at €88m, the order backlog is currently above €60m and management reports sustained high demand for SFC’s products across all regions and both segments. Given 9M sales of €63.8m and adjusted EBIT of €3.7m, SFC’s new guidance looks very conservative. Although supply chain risks still exist, we believe that SFC will exceed guidance and have increased our 2022 forecasts. Despite the looming recession, SFC’s growth prospects remain excellent. The company has sufficient financial leeway to finance the planned strong growth due to the large capital increase in July. An updated DCF model, which reflects the increased interest rate level, yields a €35 price target (previously: €37). We confirm our Buy recommendation.