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Bank of America has initiated coverage on ProPetro (NYSE:PUMP) with a ‘Buy’ rating and a price objective of $18, citing a combination of cyclical recovery in oilfield services and longer-term growth in power infrastructure.
Shares of ProPetro traded up almost 3% at $15 on Monday afternoon.
The bank’s analysts believe ProPetro is well placed for a recovery in hydraulic fracturing, or “Completions,” activity after a weak period expected to bottom in 2026.
At the same time, Bank of America expects a turning point described as an “inflection,” in the company’s PROPWR business beginning in the second half of 2026. This segment focuses on providing power generation and related infrastructure, including for oil and gas operations and data centers.
The analysts expect this combination to reshape the company’s earnings profile over time. While ProPetro currently generates all of its earnings from Completions, Bank of America forecasts that by 2030 roughly 39% of adjusted EBITDA could come from the power segment, reducing reliance on the more volatile oilfield services cycle.
Overall, the firm projects revenue and adjusted EBITDA to grow at compound annual rates of 15% and 35%, respectively, from 2026 through 2030. Its adjusted EBITDA estimates for 2027 and 2028, $365 million and $520 million, are significantly above consensus, reflecting a stronger expected recovery in completions activity.
Cash flow from the legacy business is expected to fund much of the expansion. The analysts estimate free cash flow from Completions will increase from $94 million in 2026 to $170 million in 2027 and $270 million in 2028, which they say should allow ProPetro to scale its power operations without taking on substantial additional debt.
Bank of America also pointed to execution in the power segment, noting the company has assembled an experienced team and has already secured contracts, including a long-term agreement tied to a 60-megawatt data center. The firm expects the division to generate adjusted EBITDA of about $9 million in 2026, rising to $94 million in 2027 and $158 million in 2028 as more capacity is deployed.
Despite a roughly 54% rise in the stock so far this year, the bank’s analysts believe its valuation remains relatively low compared with peers, trading at a discount on forward EBITDA multiples.
They see the overall setup as offering an “attractive risk/reward,” while highlighting risks including prolonged weakness in oil prices, execution challenges in scaling the power business, and the company’s concentration in US shale regions.