SFC Energy AG: Initiation of coverage by Deutsche Bank with a “Buy” rating and a target price of EUR 33.00 per share – Upside of 52%
Brunnthal/Munich, Germany, 23 April 2025 – Deutsche Bank research analysts Michael Kuhn and Mengxian Sun have initiated coverage of the SFC Energy AG (“SFC”, F3C:DE, ISIN: DE0007568578), a leading provider of fuel cells for stationary, portable and mobile hybrid power solutions, based in Brunnthal/Munich, Germany. In their initial study, the research analysts highlight SFC’s unique position in the fuel cell market, backed by more than 25 years of experience, a viable business model, that unlike many of its peers, has a proven track record of profit generation and positive cash flows, and independence from government subsidies.
The study also emphasises SFC's proven growth strategy based on three pillars – market penetration and international expansion, technology and IP development, and the pursuit of complementary M&A opportunities – as the basis for past and, above all, future growth. SFC is also characterised by its focus on high-growth markets such as defence and public security, civil security and surveillance technologies, and critical infrastructure, with a strong established and growing customer base in these target areas. In the current geopolitical environment, SFC's NATO-qualified fuel cell systems for portable, remote and vehicle-based applications are also recognised as a "unique advantage". SFC's differentiated products, strong IP portfolio and high barriers to entry provide long-term strategic value. With regard to tariffs, proactive measures have been taken to mitigate potential impacts, such as inventory build-up, local methanol sourcing, and establishing local production in the US. As a result, the potential impact of tariffs on EBIT is estimated to be in the low single-digit millions and is “considered manageable".
With a solid balance sheet (approx. EUR 60 million net cash) and an attractive valuation, SFC is seen to be positioned for strong growth. Accordingly, the research analysts expect “significant growth ahead” in the coming years.
Overall, the Deutsche Bank research analysts see a target price of EUR 33.00 per SFC share based on a DCF model back-tested with peer multiples. This corresponds to an upside of 52% compared to the Xetra closing price of EUR 21.65 on 22 April 2025.
Further information on SFC Energy's Clean Energy and Clean Power Management solutions can be found at sfc.com.
About SFC Energy AG
SFC Energy AG (www.sfc.com) is a leading provider of hydrogen and methanol fuel cells for stationary, portable and mobile hybrid power solutions. With the Clean Energy and Clean Power Management business segments, SFC Energy is a sustainably profitable fuel cell producer. The Company distributes its award-winning products worldwide and has sold more than 75,000 fuel cells to date. The Company is headquartered in Brunnthal/Munich and has operating subsidiaries in Canada, India, the Netherlands, Romania, Denmark, the United Kingdom, and the United States of America. SFC Energy AG is listed on the Deutsche Boerse Prime Standard and has been part of the selection index SDAX since 2022 (GSIN: 756857, ISIN: DE0007568578).
SFC Investor Relations and Press:
CROSS ALLIANCE communication GmbH
Susan Hoffmeister
Phone +49 89 125 09 03-33
Email: susan.hoffmeister@sfc.com
Web: sfc.com
