NRW Holdings' (ASX:NWH) order book and pipeline are supportive of consensus fiscal year 2026 forecasts, Jefferies said in a Monday note.

If the conversion rate of its fiscal year 2025 order book to the year's revenue remains consistent with the 59% rate the firm saw over the last five years, consensus revenues should be comfortably met.

NRW has been the highest performing firm in the mining services sector in the investment firm's coverage for the past two years. It is now trading near the top of its 10-year valuation range.

Conditions are becoming tighter for constructors and contractors, Jefferies noted. Skilled labor availability is again becoming tight, and this may see productivity issues emerge.

Jefferies downgraded its recommendation to hold from buy and maintained its price target of AU$5.25 per share.