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Investing.com - RBC Capital has raised its price target on Kodiak Gas Services Inc (NYSE:KGS) to $45.00 from $43.00 while maintaining an Outperform rating. This target sits near the high end of the analyst range, with targets spanning from $35 to $48, representing potential upside of 34% from the current price of $32.95.
The price target increase follows what RBC described as "solid" third-quarter 2025 results for Kodiak, which were partially offset by a one-time fee related to the divestment of the company’s Mexico assets. The company posted $1.28 billion in revenue over the last twelve months, with impressive 19.4% revenue growth.
RBC noted that natural gas demand should continue to support Kodiak’s contracted growth plans, with 2026 capital plans "effectively fully under contract" as large horsepower compression remains essentially fully utilized.
The investment firm expects this high utilization to drive pricing and margin strength for Kodiak Gas Services in the coming periods.
RBC maintained its Outperform rating on the stock as it anticipates "continued demand for compression to drive growth," with the firm rolling forward its estimates to 2027.
In other recent news, Kodiak Gas Services reported its third-quarter 2025 financial results, showing a mixed performance. The company missed its earnings per share (EPS) forecast, reporting an actual EPS of $0.36 compared to the expected $0.42. However, Kodiak surpassed revenue expectations, generating $322.74 million against the forecasted $234.76 million. In a related development, Kodiak announced the pricing of an underwritten offering of 10 million shares by Frontier TopCo Partnership, L.P., an affiliate of EQT Infrastructure III and IV funds, at $33.60 per share. Kodiak will not receive any proceeds from this offering, but it plans to repurchase 1 million of these shares as part of its existing repurchase program.
Additionally, Stifel raised its price target for Kodiak Gas Services to $48.00 from $47.00, maintaining a Buy rating following the company’s third-quarter results. The research firm highlighted several factors indicating continued growth, despite the absence of specific guidance for 2026. These recent developments reflect a period of strategic financial activity for Kodiak Gas Services.
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