on Deutsche Rohstoff AG (isin : DE000A0XYG76)
First Berlin Equity Research Reaffirms 'Buy' Rating for Deutsche Rohstoff AG
First Berlin Equity Research has reaffirmed its 'Buy' rating for Deutsche Rohstoff AG (ISIN: DE000A0XYG76), while adjusting the target price from €51 to €48. The update was issued by analyst Simon Scholes, following recent fluctuations in oil futures prices and discussions with company management.
Oil contributed 58% of Deutsche Rohstoff AG's volume and 87% of its revenue in H1 2024. Since the company’s last update in August, average oil futures for Q4 2024 and FY 2025 dropped by 10% and 9%, respectively. The company plans to invest €100 million to €110 million in 2025, primarily in 11 Niobrara wells in Wyoming, a commitment that remains steady despite current oil prices.
Projections now include modest volume increases of 3.6% in 2026 and 2.9% in 2027. Strong execution and ample reserves are expected to support stable to growing profits. EBITDA is projected to average €150 million over 2025-2027, yielding an EV/EBITDA ratio of 1.9x, compared to the €132 million average from 2021-2024.
R. E.
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