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 36.00 price target.

Abstract
In Q1/23, SFC Energy reported record top line growth of 53% y/y and quadrupled adjusted EBITDA to €3.3m. Net income amounted to €2.0m versus €-1.2m in Q1/22. The spectacular growth and high margins (gross margin: 37.2%, adjusted EBITDA margin: 12.2%, adjusted EBIT margin: 7.8%) reflect SFC’s excellent competitive position. The company reiterated guidance (2023 sales: €103m – €111m, adjusted EBITDA €8.9m – €14.1m) and is well on track to reach the upper end of these numbers. Based on unchanged forecasts, an updated DCF model still yields a €36 price target. We confirm our Buy recommendation.