JPMorgan raises National Energy Services Reunited stock price target to $19

Investing.com - JPMorgan has raised its price target on National Energy Services Reunited (NASDAQ:NESR) stock to $19.00 from $10.00 while maintaining an Overweight rating. The stock, currently trading near its 52-week high with an EV/EBITDA multiple of 13.45x, has shown strong momentum in recent months. InvestingPro analysis indicates the stock is currently fairly valued based on comprehensive fundamental analysis.

The firm expects NESR’s third-quarter 2025 results to be overshadowed by significant growth opportunities that could materialize in the near term and substantially increase the company’s earnings power. JPMorgan notes that management previously indicated potential for reaching $2.0 billion in annual revenue, compared to the firm’s current 2025 estimate of $1.3 billion. The company maintains a moderate debt level with a debt-to-equity ratio of 2.28x, suggesting financial flexibility for growth initiatives.

JPMorgan believes NESR is well-positioned to win the pending Jafurah fracturing tender in Saudi Arabia, which could significantly increase fracturing stage counts and boost earnings. The firm has raised its 2026 and 2027 revenue estimates to $1.74 billion and $2.0 billion, respectively, compared to Street estimates of $1.43 billion and $1.46 billion.

Despite the positive long-term outlook, JPMorgan anticipates NESR will miss third-quarter 2025 expectations due to a temporary slowdown in Jafurah activity ahead of the tender award. The firm’s Q3 EBITDA estimate of $66 million falls below the consensus forecast of $73 million. InvestingPro subscribers can access detailed financial health metrics and 8 additional key insights about NESR’s performance and valuation outlook.

The new December 2026 price target of $19 assumes NESR shares will trade at 4.0x JPMorgan’s 2027 EBITDA estimate, discounted back by one year. The firm sees limited downside risk even if NESR doesn’t win the tender, noting that the current valuation appears to embed little value for potential success on the tender. With an overall Financial Health Score of "FAIR" and consistent profitability over the last twelve months, NESR demonstrates resilience in its core operations.

In other recent news, National Energy Services Reunited Corp. (NESR) reported second-quarter adjusted earnings that surpassed analyst expectations. The company posted an adjusted earnings per share of $0.21, exceeding the analyst estimate of $0.18. Revenue for the quarter reached $327.4 million, which was above the consensus estimate of $315.97 million and marked an 8.0% sequential increase. Additionally, NESR’s revenue showed a modest 0.7% improvement compared to the previous year. In a separate development, Kuwait Drilling Company secured a $200 million integrated drilling services contract in Jordan in collaboration with NESR. This four-year campaign will involve drilling 80 wells, furthering their cooperation in the Middle East and North Africa region. Meanwhile, Piper Sandler raised its price target for NESR stock to $13.00 from $11.00, maintaining an Overweight rating. Despite reducing its 2025 and 2026 EBITDA estimates, Piper Sandler’s positive outlook reflects NESR’s growth potential in the MENA region.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.