A Look At National Energy Services Reunited (NESR) Valuation After Jafurah Fracturing Contract Win
National Energy Services Reunited (NasdaqCM:NESR) has drawn fresh attention after winning a multi year unconventional fracturing contract linked to Saudi Arabia’s Jafurah field, an agreement described as significant for the company’s revenue prospects.
See our latest analysis for National Energy Services Reunited.
The recent Jafurah win comes as momentum in the shares has been building, with a 90 day share price return of 54.8% at a latest share price of $15.79, while the 1 year total shareholder return stands at 88.0%.
If this kind of contract win has caught your eye, it could be a good time to look at aerospace and defense stocks as another way to spot specialised service providers tied to long term spending cycles.
With NESR trading at US$15.79 after a strong 1 year total return of 88.0% and sitting roughly 25% below one analyst price target of US$19.80, an important question arises: is there still a buying opportunity here, or is the market already pricing in the contract driven growth story?
Most Popular Narrative Narrative: 20.3% Undervalued
With a fair value estimate of US$19.80 against a last close of US$15.79, the most followed narrative argues the shares trade at a clear discount and leans heavily on long duration contracts and earnings visibility to support that view.
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, supporting more stable cash flow and profitability.
Want to see what kind of revenue path and margin profile are being penciled in here? The entire case hinges on steady growth, fatter margins and a lower future P/E than the sector currently trades on. Curious how those pieces fit together to reach that US$19.80 number?
Result: Fair Value of $19.80 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, that storyline can fray quickly if key MENA contracts are delayed or renegotiated, or if energy transition policies squeeze long term demand for NESR’s services.
Find out about the key risks to this National Energy Services Reunited narrative.
Build Your Own National Energy Services Reunited Narrative
If you see the story differently, or simply want to test your own assumptions against the numbers, you can build a personalised view in just a few minutes by starting with Do it your way.
A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding National Energy Services Reunited.
Looking for more investment ideas?
If NESR has you thinking about what else is out there, now is a smart moment to widen your search before the next set of stories takes shape.
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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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