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 Energy is guiding towards strong sales growth of ca. 20% to 30% y/y (sales of €142m – €154m) in 2024. Adjusted EBITDA is forecasted to reach between €17.5m and €22.4m, a plus of between 15% and 47% compared to the 2023 figure. Guidance is in line with our forecast. We expect strong and profitable growth thanks to regional expansion (in particular North America and Asia) and SFC’s market leading position in the direct methanol fuel cell business. SFC is offering mature industrial products and has an established global marketing network. Preliminary 2023 figures were slightly above the previously reported figures. Sales rose to €118.1m (+39% y/y), adjusted EBITDA amounted to €15.2m (+86% y/y, margin: 12.8%), and adjusted EBIT more than tripled to €9.7m (margin: 8.2%). An updated DCF model yields an unchanged €34 price target. We confirm our Buy recommendation.