SFC Energy AG: Updated Buy Recommendation Amid Forecast Adjustments

SFC Energy AG recently received an updated Buy recommendation from First Berlin Equity Research. Analyst Dr. Karsten von Blumenthal slightly lowered the target price to €31 from €34, following Q3 results. The company's revenue rose 11% year-on-year to €34.3 million, with adjusted EBITDA increasing 24% to €5.7 million. This performance placed the adjusted EBITDA margin at an industry-leading 17.3% over the first nine months.

Significant optimism was reported from US clients in sectors like defense and oil post-election. However, geopolitical uncertainties and slower European growth led to revised forecasts. SFC's strong balance sheet positions it well for consolidation, highlighted by its recent acquisition of Ballard Power. Despite slightly lower revenue guidance for 2024, SFC is projected to maintain robust growth through 2027, with its innovative methanol fuel cells driving demand.