Stif: back to all-time highs after new contracts

(CercleFinance.com) - Stif is back close to its all-time highs on Friday morning after reporting further commercial successes with international customers in its explosion protection business (BESS), its main growth driver.


The French group, which already counts Tesla among its major customers, says it has signed initial business volumes with other players in the sector, against a backdrop of 'sharply rising' demand for energy storage solutions.

In Asia, Stif is currently producing and delivering blast-proof components to China's CATL, the world's largest battery manufacturer, and BYD, an electric vehicle manufacturer, in parallel with the ramp-up of an initial contract signed with Japan's Hitachi.

In Europe, the company reports that it has initiated new business relations with Germany's Siemens Energy, for which safety devices are also produced.

These new contracts were greeted by a 3% jump in the share price on Friday morning on the Paris Bourse, which thus returned not far from its July records.

Until now, we have only been aware of the contracts with Tesla and Sungrow, and this press release reinforces our objectives and forecasts for the year", commented Euroland analysts.

"We are maintaining our forecast of 26.6 million euros in BESS sales for this year, representing growth of over 20 million euros on the previous year", they added.

The brokerage firm therefore retains its Buy recommendation, with a target price of 24.4 euros, representing a potential upside of 37%.

Stif - which saw its sales soar by over 69% in the first six months of the year - plans to publish its first-half results on October 9 after the close of trading.

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