ProPetro gains after JP Morgan upgrades rating to 'overweight'

Shares of oilfield services provider ProPetro PUMP.N up 2.1% at $11.20 premarket, after J.P. Morgan upgrades stock rating to "overweight" from "neutral"

Brokerage also raises its price target to $13 from $7, citing an 18.5% upside from Tuesday's close

JPM says the upgrade is due to the significant growth potential of PUMP's PROPWR segment

"In terms of our valuation, we give credit for 500 megawatt of capacity, which would equate to ~$135 million of annualized EBITDA by 4Q27 based on the company's ~$275,000 of EBITDA per MW" - JPM

Three out of 9 brokerages rate the stock "buy" or higher and 6 "hold"; their median PT is $12 - data compiled by LSEG

As of last close, PUMP shares were up 17.5% YTD