ProPetro Gets Buy Rating and $18 Target, EBITDA to Grow 35% Annually
Bank of America initiated coverage on ProPetro with a Buy rating and $18 price target, forecasting 15% revenue and 35% adjusted EBITDA CAGRs from 2026–2030. It predicts the power segment will contribute 39% of EBITDA by 2030 and free cash flow rising to $270 million in 2028.
1. Initial Coverage and Rating
Bank of America initiated coverage on ProPetro with a Buy rating and set a $18 price target. ProPetro shares traded up nearly 3% to $15 following the announcement.
2. Growth Forecasts and Financial Projections
Analysts project revenue and adjusted EBITDA to grow at 15% and 35% CAGRs, respectively, from 2026 through 2030. They forecast adjusted EBITDA of $365 million in 2027 and $520 million in 2028, well above consensus estimates.
3. Power Segment Expansion
The PROPWR division is expected to reach an inflection point in the second half of 2026, with a goal of generating 39% of adjusted EBITDA by 2030. The company has secured a 60-megawatt data center contract and assembled an experienced power infrastructure team.
4. Risks and Valuation
Key risks include prolonged weak oil prices, challenges scaling the power business, and concentration in US shale regions. Despite a 54% year-to-date stock gain, ProPetro still trades at a discount on forward EBITDA multiples.