ProPetro Holding (PUMP) PT Raised to $20 at Stifel

Stifel analyst Stephen Gengaro raised the price target on ProPetro Holding (NYSE: PUMP) to $20.00 (from $7.00) while maintaining a Buy rating.

The analyst comments "We are reiterating our Buy and sharply increasing our target price on PUMP to $20 from $7 based on our new sum-of-the-parts analysis detailed below. Our new target price reflects its substantial expansion plans for its Power business, including: 1) expectations to have 220 MW contracted by year-end 2025; 2) receiving delivery of 360 MW of power assets on order by early 2027; 3) ordering additional capacity to have 750 MW delivered by year-end 2028, and 4) the financial flexibility of a $350 million lease financing facility. Importantly, energy is a key bottleneck in the scaling of highperformance compute infrastructure, and hyperscalers appear willing to pay a premium for low-latency and highly-reliable power infrastructure. Access to power is trumping the cost of power, and this is likely to persist, fueling demand for power assets like PUMP has on order."

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