A Fresh Look at National Energy Services Reunited's (NasdaqCM:NESR) Valuation Following Analyst Confidence and Revenue Projections

Shares of National Energy Services Reunited (NESR) are getting some attention after JPMorgan reaffirmed its positive outlook on the stock, projecting increased revenue for the fourth quarter and into 2025. This comes in addition to a similar show of confidence from Piper Sandler analysts.

See our latest analysis for National Energy Services Reunited.

After a year where National Energy Services Reunited’s momentum built steadily, the stock has delivered an impressive 77% share price return over the past 90 days and a 17% total shareholder return for the year. Recent analyst confidence and optimism about rising revenues have fueled a positive shift in the market’s risk perception. This signals renewed growth potential beyond short-term moves.

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With the stock near recent highs and analysts signaling further upside, the question now is whether National Energy Services Reunited is still undervalued or if the market has already priced in its future growth potential.

Most Popular Narrative: 29.1% Undervalued

Compared to the last close price of $10.64, the narrative sets a fair value far higher, suggesting substantial headroom if projections hold. This finding comes as analysts align on improved operational momentum and a changed profit outlook.

Secured multi-year (3, 9 year) contract durations, growing contract awards, and a backlog that extends to 2030+ give NESR a high degree of earnings visibility and reduce volatility. This supports more stable cash flow and profitability.

Read the complete narrative.

Want to know what’s driving this bullish view? The secret sauce lies in game-changing contract wins, margin expansion assumptions, and a growth path that rewrites industry expectations. Ready for the numbers behind this confidence? Get the full story for the surprising calculations that support this ambitious fair value.

Result: Fair Value of $15 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, contract delays or regional instability could quickly undermine these bullish forecasts. This highlights that risks remain even as optimism grows.

Find out about the key risks to this National Energy Services Reunited narrative.

Another View: Is the Market Overlooking Risks?

While the headline numbers suggest National Energy Services Reunited trades far below its calculated fair value, a closer look at its price-to-earnings ratio reveals a different story. At 14.5 times earnings, shares appear more expensive than both industry averages and key peers, and well above the level suggested by the fair ratio of 22.2x. This gap may point to valuation risk if the optimistic growth narrative does not fully play out. Could market enthusiasm be running ahead of fundamentals, or is there hidden potential waiting to be unlocked?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own National Energy Services Reunited Narrative

If you see things differently or want to test your own assumptions, you can dig into the numbers yourself and shape your own perspective in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding National Energy Services Reunited.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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