Stifel lifts USAC stock price target to $28, maintains Hold

Published 11/02/2025, 21:30
Stifel lifts USAC stock price target to $28, maintains Hold

In an effort to enhance efficiency, USA Compression Partners is transitioning to a shared service model in collaboration with Energy Transfer (NYSE:ET). This strategic move is expected to streamline operations, foster process optimization, advance digitization efforts, and contribute to cost reduction.The management team at USA Compression Partners believes that the company is strategically positioned to seize growth opportunities. Additionally, they are focused on reducing the company’s leverage ratio. The company maintains a healthy current ratio of 1.43, demonstrating strong liquidity, and offers a substantial 7.2% dividend yield with an 8-year track record of consistent payments. Stifel’s decision to maintain a Hold rating comes alongside the raised price target, reflecting their updated valuation of the stock based on the recent positive developments and future prospects outlined by the company. For a comprehensive analysis of USAC’s financial health and growth prospects, investors can access the detailed Pro Research Report available on InvestingPro.

In an effort to enhance efficiency, USA Compression Partners is transitioning to a shared service model in collaboration with Energy Transfer. This strategic move is expected to streamline operations, foster process optimization, advance digitization efforts, and contribute to cost reduction.The management team at USA Compression Partners believes that the company is strategically positioned to seize growth opportunities. Additionally, they are focused on reducing the company’s leverage ratio. The company maintains a healthy current ratio of 1.43, demonstrating strong liquidity, and offers a substantial 7.2% dividend yield with an 8-year track record of consistent payments. Stifel’s decision to maintain a Hold rating comes alongside the raised price target, reflecting their updated valuation of the stock based on the recent positive developments and future prospects outlined by the company. For a comprehensive analysis of USAC’s financial health and growth prospects, investors can access the detailed Pro Research Report available on InvestingPro.

In an effort to enhance efficiency, USA Compression Partners is transitioning to a shared service model in collaboration with Energy Transfer. This strategic move is expected to streamline operations, foster process optimization, advance digitization efforts, and contribute to cost reduction.

The management team at USA Compression Partners believes that the company is strategically positioned to seize growth opportunities. Additionally, they are focused on reducing the company’s leverage ratio. Stifel’s decision to maintain a Hold rating comes alongside the raised price target, reflecting their updated valuation of the stock based on the recent positive developments and future prospects outlined by the company.

In other recent news, USA Compression Partners LP (NYSE:USAC) outperformed revenue expectations and achieved a 7% higher EBITDA than projected by Raymond (NSE:RYMD) James, which reaffirmed its Outperform rating and $27 price target. The company set a new record for quarterly revenue-generating horsepower (HP (NYSE:HPQ)), reaching 3.56 million. Despite this, earnings per unit (EPU) fell slightly short of expectations due to several one-time factors.

Mizuho (NYSE:MFG) Securities increased its price target for USA Compression to $26, maintaining a Neutral rating. The firm anticipates significant expansionary capital expenditure in the coming years, despite no new unit orders being placed yet. Mizuho also noted potential for equity revaluation in 2025 if the company can demonstrate earnings growth from its capital expenditures.

In related developments, Energy Transfer LP announced a 3.2 percent increase in its quarterly cash distribution to $0.3250 per common unit for the fourth quarter of 2024. Energy Transfer, which owns interests in USA Compression Partners, plans to release its earnings for the fourth quarter and full year of 2024 soon. These are some of the recent developments for investors to consider.

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