First Berlin Equity Research Maintains Buy Rating for Deutsche Rohstoff AG

First Berlin Equity Research has updated its valuation on Deutsche Rohstoff AG, maintaining a Buy rating and increasing the price target from EUR 124 to EUR 145. The firm accounts for increased valuation in DRAG's holdings in Almonty and higher drilling capital expenditures projected for 2027. DRAG announced a substantial share sale in Almonty, gaining nearly €100m from 9 million shares sold. This will fund a €220m-€230m drilling programme in 2026. This plan comprises approximately 21.8 net wells, with production starting mid-year and continuing into later quarters.

Guidance for 2027 suggests CAPEX will be around €150m, up from the initially estimated €113m, expecting about 15 new wells. DRAG’s balance sheet remains robust, with a projected net debt to EBITDA ratio of just 0.4x. Almonty’s share price has increased by 12% since April, influencing the raised target price. Long-term production models for oil and gas post-2027 also contributed to the evaluation. The Buy recommendation reflects a potential upside of 58% on the stock.