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Tuesday, Benchmark analysts began coverage on shares of National Energy Services Reunited (NASDAQ:NESR), issuing a Buy rating and setting a price target of $15.00. The firm's analysts highlighted NESR as a Mid-East focused energy services and technology company with a growth rate surpassing the overall market's pace.
According to InvestingPro data, the company has demonstrated strong fundamentals with a 14% revenue CAGR over the past five years and an EBITDA of $261 million in the last twelve months.
The analysts drew parallels between NESR's current market position and the opportunities previously seen with companies like Weatherford, which had a successful period under new management from 2021 to 2024, and Cactus (NYSE:WHD), which experienced profitable market share gains following its IPO in 2018.
They noted that with a market capitalization of approximately $900 million, NESR presents an attractive option for Small and Mid-Cap growth funds. InvestingPro analysis suggests the stock is currently undervalued, with a beta of 0.45 indicating lower volatility compared to the market.
National Energy Services Reunited currently has 95 million shares outstanding, with a public float constituting 33% of these shares. Institutional ownership stands at around 60%, and insiders hold approximately 7% of the stock. The average trading volume over the past 30 days has been about 140,000 shares.
The analysts' optimistic outlook on NESR is based on the company's position as a smaller entity achieving rapid growth in the competitive energy sector. Their $15 price target suggests a confident view of the stock's potential performance.
National Energy Services Reunited, with its significant institutional and insider ownership, coupled with a solid trading volume, is now under the watchful eye of Benchmark analysts as it continues to navigate the energy services and technology landscape in the Middle East.
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