NESR Should I Buy
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National Energy Services Reunited Corp (NESR) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. Despite short-term financial challenges, the company's strong analyst ratings, increasing price targets, and growth potential in the Middle East energy sector make it a promising long-term investment.
The stock shows mixed signals. The MACD is negative and expanding (-0.43), indicating bearish momentum. RSI is neutral at 26.585. However, the moving averages are bullish (SMA_5 > SMA_20 > SMA_200), suggesting an overall upward trend. Key support levels are at 22.41 and 21.197, with resistance at 26.337 and 27.55.
Strong analyst sentiment with multiple Buy ratings and raised price targets (e.g., UBS raised to $31, Barclays raised to $34).
Positive growth outlook in the Middle East energy sector, with new contracts like Jafurah driving future revenue and EBITDA growth.
Bullish moving averages indicating a long-term upward trend.
Weak financial performance in Q4 2025, with a 70.92% YoY drop in net income and a 71.43% YoY drop in EPS.
Gross margin declined significantly by 31.36% YoY.
Lack of recent news or significant insider/hedge fund activity.
In Q4 2025, revenue increased by 15.88% YoY to $398.26M, but net income dropped by 70.92% YoY to $7.8M. EPS also fell by 71.43% YoY to $0.08, and gross margin declined to 10.88%, down 31.36% YoY. While revenue growth is promising, profitability metrics are concerning.
Analysts are highly positive on NESR. UBS and Barclays raised their price targets to $31 and $34, respectively, citing strong growth potential from the Jafurah project and resilient margins. Analysts see stable growth in the Middle East and North Africa region, with potential contract wins in 2026 driving further upside.
