Deutsche Rohstoff AG Receives Updated Research and Target Price Adjustment from First Berlin Equity Research

First Berlin Equity Research GmbH has released an updated analysis report on Deutsche Rohstoff AG, adjusting the target price from EUR 54.00 to EUR 51.00 and shifting the stock recommendation from Buy to Add. Analyst Simon Scholes highlighted this change due to a less than 25% upside potential to the new target price. The report was issued on May 8, 2024.

The reassessment follows Deutsche Rohstoff AG's disclosure of their final 2023 financial results. The company reported a revenue increase of 18.9%, reaching €196.7 million, and an EBITDA growth of 13.8%, totaling €158.3 million. This financial growth is attributed to a significant production rise in Wyoming, where the company has developed only about 15% of its acreage yet delivered strong performance metrics, particularly in oil production.

Despite the positive growth in operational output, First Berlin noted the downward adjustment in oil and gas prices which slightly impacted the returns. Furthermore, the average levels of future oil strips for 2024 and 2025 present a decrease from previous figures, leading to the decreased target price for Deutsche Rohstoff AG's shares.