JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Tuesday, Citi analyst Douglas Irwin increased the price target on USA Compression Partners LP (NYSE:USAC) to $27.00, up from the previous $24.00, while maintaining a Neutral rating on the shares. Currently trading at $27.74, the stock has shown impressive momentum with a 31% return over the past six months. The adjustment comes in response to anticipated growth in the company’s backlog, which is expected to enhance long-term cash flow starting in 2026. According to InvestingPro data, the company appears to be trading near its Fair Value, with analyst targets ranging from $23 to $30.
USA Compression Partners recently provided 2025 guidance that was slightly below expectations, but the company has indicated a strategic shift towards focusing on contracted new high-pressure (HP (NYSE:HPQ)) additions in 2025. With a substantial market capitalization of $3.25 billion and an attractive dividend yield of 7.57%, the company has maintained dividend payments for 8 consecutive years. These additions are predicted to be concentrated towards the end of the year, which might minimize their impact on the 2025 financial results. However, Citi considers the guidance to be conservative and believes that reaching the upper end of the projected range is within reach for the company. InvestingPro subscribers have access to 10 additional key insights about USAC’s financial health and growth prospects.
The firm’s pivot towards growth is seen as a potential boost for 2026, despite the fact that Citi views the balance sheet as a constraint on the company’s ability to expand. Citi forecasts that USA Compression can add just over 100 HP in 2026 while remaining free cash flow neutral after distributions and keeping leverage below 4.0 times. This is expected to contribute to an approximate 6% year-over-year growth in EBITDA.
Citi’s revised price target reflects a more optimistic view of USA Compression’s long-term financial prospects, even though the firm’s near-term expectations are tempered by the company’s conservative outlook for 2025. The Neutral rating suggests that while there is potential for growth, there may still be factors that could limit the stock’s performance in the near term.
In other recent news, USA Compression Partners LP reported a revised 2025 earnings outlook, forecasting more modest EBITDA growth of 2%-4%, with expectations between $590 million and $610 million. This led S&P Global to adjust its outlook on the company to stable from positive, citing slower growth expectations, and affirm its ’B+’ issuer credit rating. Meanwhile, Raymond (NSE:RYMD) James raised its price target for USA Compression to $30, maintaining an Outperform rating, following the company’s solid fourth-quarter performance and strategic deployment of large horsepower units. Stifel also increased its price target to $28 while maintaining a Hold rating, highlighting the company’s robust 2025 EBITDA projection of approximately $600 million and strategic transition to a shared service model with Energy Transfer (NYSE:ET).
In contrast, Mizuho (NYSE:MFG) Securities raised its price target to $26 but kept a Neutral rating, noting potential benefits from broader market trends but expressing concerns over inconsistent growth communication compared to industry peers. Despite these varied assessments, USA Compression Partners’ management remains optimistic about market conditions and future growth opportunities. The company is expected to undertake significant expansionary capital expenditures, estimated at around $245 million, although new unit orders have not yet been placed. Overall, these developments reflect a mix of cautious optimism and strategic planning as USA Compression navigates the evolving market landscape.
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