Chardan Capital initiates coverage on Kodiak AI stock with Buy rating

Investing.com - Chardan Capital Markets initiated coverage on Kodiak AI (NASDAQ:KDK) with a Buy rating and a $22.00 price target, highlighting the company’s autonomous driving technology for trucks.

The research firm noted that Kodiak AI currently trades at an enterprise value of $1.6 billion, representing an 85% discount to competitor Aurora Innovation (NASDAQ:AUR), which has an enterprise value of $9.9 billion.

Kodiak’s main product, the Kodiak Driver, is currently in its sixth generation and incorporates LiDAR, RADAR, and cameras to enable Level 4 autonomous operation. The system has logged 2.8 million miles, 1,900 hours of operations, and delivered over 7,300 loads.

The company has achieved true autonomous operation without safety drivers for its flagship customer Atlas Energy (NYSE:AESI), transporting frac sand in the Permian Basin under challenging conditions including night operations and harsh environments. InvestingPro data shows Atlas Energy offers an impressive 8.27% dividend yield and has seen a 14.16% price return over the past week. The company maintains a healthy liquidity position with a current ratio of 1.56, though it trades at a high P/E ratio of 97.8. Atlas reports earnings in just 4 days.

Chardan believes Kodiak’s expertise gives it an advantage over competitors in off-road industrial markets such as oil and gas, mining, logging, and construction, as well as potential military applications and the long-haul trucking market. For deeper insights on Atlas Energy and 1,400+ other stocks, InvestingPro offers comprehensive Pro Research Reports with actionable intelligence for smarter investing decisions.

In other recent news, Atlas Energy Solutions Inc. reported its second-quarter 2025 earnings, revealing a notable discrepancy in earnings per share (EPS) but exceeding revenue expectations. The company posted an EPS of -$0.04, significantly missing the forecasted $1.08, while achieving revenue of $288.7 million, which surpassed the expected $239.17 million by 20.71%. In light of these financial results, Stifel lowered its price target for Atlas Energy Solutions to $14.00 from $14.50 but maintained a Buy rating on the stock. Meanwhile, RBC Capital downgraded Atlas Energy Solutions from Outperform to Sector Perform, citing concerns over the soft Permian sand supply-demand balance.

Additionally, the company announced the departure of Chris Scholla, Executive Vice President and President of Sand and Logistics, effective immediately. Scholla’s departure qualifies as a “Qualifying Termination” under the company’s Management Change in Control Severance Plan, entitling him to post-employment benefits. In other market activities, Kodiak AI, after completing its business combination with Ares Acquisition Corporation II, is set to begin trading on the Nasdaq under the ticker "KDK." These developments reflect the dynamic nature of the current market landscape for Atlas Energy Solutions and other industry players.

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