ProPetro Holding (PUMP) has just completed and priced an upsized public offering of 15,000,000 common shares at about US$10 each, raising roughly US$150 million to support general corporate needs and additional power generation equipment.

The offering arrives after a 15.12% 1 month share price return and an 8.55% year to date share price gain, while the 1 year total shareholder return of 14.01% points to momentum that has been building rather than fading.

If this capital raise has you thinking about where else capital is moving, it could be a useful time to scan aerospace and defense stocks for other ideas in adjacent energy linked spending.

With PUMP recently priced near US$10 in the offering and the last close at US$10.66, while sitting at a reported 27% discount to the average analyst target, is the market offering value or already factoring in future growth?

Most Popular Narrative: 18.7% Undervalued

With ProPetro Holding’s fair value estimate at about $13.11 versus a last close of $10.66, the most followed narrative sees meaningful upside still on the table.

Early traction and long-term visibility in the PROPWR power business, including the recent 10-year, 80-megawatt contract and confidence in fully deploying 220 megawatts by end of 2025, expands addressable markets and creates a stable, recurring cash flow stream, expected to drive sustained revenue and margin growth.

Curious what has to happen for that power build out to justify a higher price tag? The narrative relies on specific revenue, margin, and future earnings assumptions that are described as anything but conservative.

Result: Fair Value of $13.11 (UNDERVALUED)

However, that upside case bumps into some clear risks, including softer Permian completions activity and potential delays or slower adoption for the capital intensive PROPWR build out.

Build Your Own ProPetro Holding Narrative

If you look at the numbers and reach a different conclusion, or prefer to test your own assumptions, you can build a custom view in minutes with Do it your way.

A great starting point for your ProPetro Holding research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If PUMP has your attention, do not stop here. The right watchlist can be built in minutes, and waiting could mean missing the next move.

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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.