Hazer Group's (ASX:HZR) valuation could see significant upside depending on the eventual target markets and pricing of its graphite product, according to a Tuesday report by Euroz Hartleys.

Euroz values Hazer's graphite at $300 a tonne, but noted that Hazer internally uses $500 a tonne from early marketing feedback.

Despite sector weakness, Euroz believes that the company's recent partnership with KBR boosts its reputation and business plan, making future earnings more predictable with new and ongoing projects, the main drivers of the share price.

The firm maintained the company's speculative buy rating and its AU$0.76 price target.

Shares of the company rose past 10% in recent Tuesday trade.