Capstone Energy+ wins 2.6 MW Argentina turbine order; stock rises

BMO Capital has rated National Energy Services Reunited (NYSE:NESR) with an Outperform designation and set a price objective of $39.00 per share. This target implies that the stock is undervalued, with an estimated price-to-earnings multiple of 13.1 times and an enterprise value-to-EBITDA multiple of 5.5 times for 2028. These figures are lower than the 10-year oilfield services sector averages of 15.5 times and 7.3 times, respectively. The company currently trades at an EV/EBITDA ratio of 14.41, suggesting potential undervaluation.

National Energy Services has been growing rapidly, capturing market share in the Middle East. Their Jafurah contract has surpassed expectations, accelerating the company's expansion. The firm projects a $3 billion annual revenue run-rate by the end of 2028, known as the "3B3" target. Analysts anticipate strong earnings and cash flow growth to support this revenue increase.

Discounted cash flow analysis estimates the stock's value at $38, with net income expected to rise this year and both net income and cash flow showing growth. The company has been profitable over the past year. Investors can find more detailed information in the Pro Research Report, available for NESR and over 1,400 other US equities.

In Q2 2026, National Energy Services Reunited exceeded analyst estimates with adjusted earnings of $0.44 per share on $520.8 million in revenue, a 59.1% increase from the prior year and a 28.7% rise from the first quarter. Adjusted EBITDA reached $106 million, surpassing estimates by 16%. Growth was driven by increased activity in Saudi Arabia, particularly the Jafurah region and conventional operations, despite challenges in Iraq due to conflict-related disruptions.

BTIG raised its price target to $40 from $32, maintaining a Buy rating, noting regional growth in Kuwait and Oman offsetting Iraq's difficulties.