JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Tuesday, Raymond (NSE:RYMD) James analyst James Rollyson updated his outlook on USA Compression Partners LP (NYSE:USAC), raising the firm’s price target on the stock to $30.00, up from the previous $27.00, while reiterating an Outperform rating. The stock has shown remarkable momentum, with a 39% return over the past six months and currently trades near its 52-week high of $30.10. According to InvestingPro, the company offers a substantial 7.2% dividend yield and has maintained dividend payments for 8 consecutive years.
Rollyson’s assessment followed USA Compression’s solid performance in the fourth quarter, which capped off a strong year for the company. The firm’s success was attributed to the strategic deployment of large horsepower (HP (NYSE:HPQ)) units and benefiting from robust pricing in a tight market. The analyst highlighted the positive momentum in the industry, especially with favorable oil prices and increased gas volumes, particularly in the Permian Basin. Financial data from InvestingPro shows impressive revenue growth of 14.6% and a healthy current ratio of 1.43, indicating strong operational efficiency. Get access to 15+ additional ProTips and comprehensive analysis with an InvestingPro subscription.
The company’s financial guidance for 2025 indicates that earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to be consistent with projections, with capital expenditures for expansion anticipated to be slightly lower than initially expected. Rollyson pointed out that these expenditures are projected to be more concentrated towards the end of the year, which could potentially lead to stronger growth in 2026.
Rollyson commended the underlying market conditions for contract compression services, expressing confidence that USA Compression will continue to benefit from these trends. This optimistic outlook underpins Raymond James’ decision to maintain the Outperform rating and increase the 12-month price target to $30 per unit, as the valuation metrics are rolled forward.
In other recent news, USA Compression Partners LP has been the focus of multiple analyst adjustments following its fourth-quarter earnings for 2024. Stifel raised its price target to $28 from the previous $24, retaining a Hold rating on the stock. This followed the company’s announcement of a robust outlook for 2025, with projected EBITDA reaching approximately $600 million.
Raymond James reaffirmed its Outperform rating and $27 price target, noting the company’s revenue exceeded expectations and EBITDA was approximately 7% higher than projected. Meanwhile, Mizuho (NYSE:MFG) Securities increased its price target to $26 from $24, maintaining a Neutral rating, citing potential benefits from broader market trends.
USA Compression Partners is also transitioning to a shared service model with Energy Transfer (NYSE:ET), which is expected to streamline operations and contribute to cost reduction. The company is also planning its most significant expansionary capital expenditure in over ten years, estimated at around $245 million.
These are among the recent developments for USA Compression Partners, which expects a positive environment for the compression industry, bolstered by favorable oil prices and rising gas volumes. The company’s management is focused on reducing the company’s leverage ratio and is strategically positioned to seize growth opportunities.
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