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Investing.com - Stifel has significantly raised its price target on ProPetro Holding (NYSE:PUMP) to $20.00 from $7.00 while maintaining a Buy rating on the stock. The new target comes as PUMP shares have surged 75.36% in the past week alone, now trading at $11.1 and approaching their 52-week high of $11.28, according to InvestingPro data.
The investment firm cited ProPetro’s substantial expansion plans for its Power business as the primary reason for the increased target, which represents a 186% increase from the previous valuation.
Stifel highlighted several key growth milestones in its analysis, including ProPetro’s expectations to have 220 MW contracted by year-end 2025 and the scheduled delivery of 360 MW of power assets on order by early 2027.
The firm also noted ProPetro’s plans to order additional capacity to reach 750 MW delivered by year-end 2028, supported by the financial flexibility provided by a $350 million lease financing facility. InvestingPro data shows the company operates with a moderate debt level and maintains a healthy current ratio of 1.42, indicating its liquid assets exceed short-term obligations.
Stifel’s analysis suggests energy remains a key bottleneck in scaling high-performance compute infrastructure, with hyperscalers apparently willing to pay premiums for low-latency and highly-reliable power infrastructure, creating favorable market conditions for ProPetro’s power assets. Despite these growth prospects, InvestingPro analysis indicates the stock appears overvalued at current levels, with analysts not anticipating profitability this year. InvestingPro offers 10 additional insights on PUMP, including comprehensive financial health metrics in its Pro Research Report.
In other recent news, ProPetro Holding Corp reported its third-quarter 2025 earnings, exceeding market expectations. The company announced an earnings per share (EPS) of -$0.02, which was a significant improvement over the forecasted -$0.12. Additionally, ProPetro’s revenue reached $294 million, surpassing the anticipated $265.64 million. These results marked an 83.33% positive surprise in EPS, highlighting the company’s strong performance for the quarter. The earnings report has generated investor optimism, as evidenced by the significant pre-market trading activity. No major mergers or acquisitions were reported during this period. There were also no updates regarding analyst upgrades or downgrades. This series of developments underscores ProPetro’s recent financial achievements.
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