Perenti (ASX:PRN) price target could rise to AU$2.30, contingent on meeting fiscal second-half revenue and underlying earnings before interest, taxes, and amortization (EBITDA) expectations and increased drilling activity, according to a Thursday note by Euroz Hartleys.

Euroz Hartleys forecasts 5% to 15% annual earnings per share growth for Perenti, supported by a 4% to 5% dividend yield and a strong 11% free cash flow yield.

Perenti's drilling business offers significant growth potential, and Euroz notes that a steady "second-half run rate" is expected to create unskewed financial results.

Additionally, the company has about AU$2 billion in potential short-term contract renewals, Euroz added.

Euroz Hartleys predicts that if PRN sustains its second-half run rate and boosts drilling activity, it could achieve AU$365 million in EBITA for the fiscal year 2026, with a 15% return on growth capital expenditure, supporting a potential future target price of AU$2.30 per share.

The firm believes that Perenti offers "demonstrably good value" for investors, paying dividends, while continuing to repay debt.

Euroz maintained the firm's buy rating but raised its price target to AU$1.61.

Shares of the company rose nearly 2% at market close.