We reiterate our Accumulate recommendation for Innofactor and lower our target price to EUR 1.35 (previously 1.45) reflecting estimate changes and uncertainty created by the market. Innofactor's net sales grew strongly considering the challenging market. Profitability was, however, slightly below expectations, depressed by a weak start to the quarter. Market uncertainty remains high, but we expect Innofactor to navigate relatively well due to a good order backlog and recurring business. We expect moderate organic growth in the coming years and slight improvement in profitability. With our estimates the share's valuation (2023e P/E 11 and EV/EBIT 9x) is still attractive, considering the stronger base for earnings growth although uncertainty is elevated.