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.

Abstract
SFC reported strong H1 figures with 24% y/y top line growth and adjusted EBIT (AEBIT) more than doubling to €9.6m. As expected, the second quarter was burdened by MEA production limitations resulting in slow growth (+4%) and lower earnings y/y. Nevertheless, SFC is well on track with its MEA capacity expansion. The company has started two-shift production and looks set to reach full capacity by the end of August. We thus expect a return to stronger growth rates in Q3 and Q4. SFC has reiterated 2024 guidance and we believe that the company will easily reach its targets and our forecasts, as H1 AEBIT amounts to 65% of the upper end of full-year AEBIT guidance of €14.7m. An updated DCF model yields an unchanged €34 price target. We confirm our Buy recommendation.