Freedom Broker upgrades ProPetro stock rating on strong Q3 results

Freedom Broker has upgraded ProPetro Holding's stock rating to Buy, raising its price target to $12.00 from $11.00. This decision comes after the company's strong third-quarter results, which surpassed expectations. Revenue increased by 20.9% year-over-year to $355.4 million, while adjusted EBITDA grew by 69.5% year-over-year to $59.6 million.

The PROPWR segment achieved a positive EBITDA for the first time, with contracted capacity rising to 510 MW. The company's frac fleet is fully utilized, and a significant portion of contracts will be repriced in the first half of 2027 as prices rise. This positive momentum comes amid a sharp decline in the stock price, which has fallen 57% over the past six months.

Currently trading at $8.05 with a market capitalization of $991 million, ProPetro remains unprofitable over the last year, with earnings per share at -$0.12. Free cash flow remains deeply negative due to investments in PROPWR, and net debt is growing. Despite these challenges, analysts believe there is upside potential in the stock, with price targets ranging from $11 to $21.