First Berlin Equity Research Raises Deutsche Rohstoff AG Price Target

First Berlin Equity Research has updated its evaluation of Deutsche Rohstoff AG (ISIN: DE000A0XYG76), reiterating its BUY recommendation with a raised price target from €43.00 to €48.00. This revision follows Deutsche Rohstoff AG's Q1/25 report, which indicated a revenue jump of 6.2% to €59.1m despite a dip in production volume and a lower oil price.

The increase in revenue is attributed to a shift in product mix, with oil comprising 65% of Q1/25 volume. Earnings before interest, taxes, depreciation, and amortization (EBITDA) saw a 3.8% increase to €43.2m. The company is also on track to meet its 2025 financial guidance, with significant revenues secured through hedging strategies.

Cost reductions in drilling operations have allowed Deutsche Rohstoff AG to enhance the internal rate of return (IRR) for Niobrara wells significantly. The company’s strategic plans include drilling seven new wells in the Niobrara Formation in 2025, with free cash flow already positively impacted by new wells operational in Q4/24.