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 increased the price target from EUR 21.00 to EUR 22.00.

Abstract
For 2026, SFC is guiding for sales growth of 5-12% y/y, in line with our forecast. However, the guided AEBITDA range of €20m – €24m exceeds our previous estimate by 27%. Consequently, we raise our 2026E earnings forecasts. The main 2026E earnings drivers are expected to be product mix (defence share of ca. 15%-20% versus ca. 10% in 2025), lower FX headwinds, and the absence of one-off costs. We expect the defence business to be the main 2026 revenue driver. Management highlighted good visibility in H1/26 and expects strong H1 order intake, revenue, and profitability. Thanks to a strong Q4, SFC ended 2025 with AEBITDA above guidance although revenue lagged slightly behind guidance. An updated DCF model yields a new price target of €22 (previously: €21). We confirm our Buy rating (upside: 46%).