First Berlin Equity Research has published a research update on Deutsche Rohstoff AG (ISIN: DE000A0XYG76). Analyst Simon Scholes reiterated his BUY rating and increased the price target from EUR 105.00 to EUR 115.00.

Abstract
Stronger than expected production from new wells which have come online over the past three months has prompted DRAG to announce an expansion of the 2026 drilling programme from 26 to 32 gross wells. 2026 CAPEX is now expected to be €310m-€330m – an increase of 42% over the previous guidance of €220m-€230m. 2026 production guidance rises by 10% from 17,000-18,000 boepd (barrels of oil equivalent per day) to 18,500-20,000 boepd while 2026 revenue guidance is now 15% higher at €300m-€320m (previously: €260m-€280m). The increase in revenue guidance is higher than the corresponding figure for production because new wells generate a higher proportion of more valuable oil and a lower proportion of less valuable gas than established wells. New EBITDA guidance is €380m-€400m (previously: €355m-€375m). The H1/26 results (due on 19 August) will include a €15m impairment of the company’s wells in Colorado. The impairment reflects higher costs for workover activities and in some cases lower than expected production volumes from existing wells. Colorado was the primary focus of development activity during 2016 to 2021. DRAG is now focused on Wyoming which accounted for 82% of oil and gas production by volume in 2025. Adjusting our valuation model for the impact of the expanded drilling programme causes us to raise our price target from €105 to €115 (upside: 37%). We maintain our Buy recommendation.