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Assessing National Energy Services Reunited (NasdaqCM:NESR) After Transformative Jafurah Contract Win and GeoSphere Stake Boost

Simply Wall St · 2d ago

National Energy Services Reunited (NasdaqCM:NESR) has suddenly jumped onto more investors radar after GeoSphere Capital Management boosted its stake and the company clinched a multi year fracturing contract tied to Saudi Arabias Jafurah gas field.

See our latest analysis for National Energy Services Reunited.

That backdrop helps explain why the share price has climbed to $14.87, with a 20.11 percent 1 month share price return and a striking 70.14 percent 1 year total shareholder return signaling momentum that investors clearly see as building, not fading.

If contract driven growth stories like NESR interest you, this could be a good moment to see what else the market is rewarding through aerospace and defense stocks.

With the stock near a 52 week high, yet still trading at roughly a one third discount to analyst targets and an even steeper gap to intrinsic value estimates, is NESR a genuine value opportunity, or is the market already pricing in transformational growth?

Most Popular Narrative Narrative: 24.9% Undervalued

With National Energy Services Reunited last closing at $14.87 against a narrative fair value of $19.80, the implied upside rests heavily on a specific long duration growth story.

Secured multi year (3 to 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.

Read the complete narrative.

Curious how steady contract backed cash flows can still justify a material upside from here? The narrative leans on accelerating earnings, fatter margins, and a surprisingly modest future earnings multiple. Want to see exactly how those moving parts add up to that fair value call?

Result: Fair Value of $19.80 (UNDERVALUED)

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

However, this upside depends on major MENA contracts staying intact, with any delays, cancellations, or regional instability quickly undermining those long dated growth assumptions.

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 want to dig into the numbers yourself, you can build a tailored view 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.