Stifel raises Archrock stock price target to $30 on solid growth outlook

Published 06/08/2025, 15:18
Stifel raises Archrock stock price target to $30 on solid growth outlook

Investing.com - Stifel has raised its price target on Archrock (NYSE:AROC) to $30.00 from $29.00 while maintaining a Buy rating on the stock. Currently trading at $22.37, the stock shows potential upside based on analyst consensus targets ranging from $30.00 to $32.00. According to InvestingPro analysis, Archrock appears fairly valued at current levels.

The research firm made this adjustment following Archrock’s third-quarter 2025 financial results, which Stifel characterized as within acceptable parameters despite not showing stronger revenue and margin results than anticipated. InvestingPro data reveals impressive revenue growth of 28.2% over the last twelve months, with a healthy gross profit margin of 62.8%.

Stifel highlighted Archrock’s strong new business wins and high customer retention rates as positive indicators for the company’s future performance.

The firm noted that Archrock’s fourth-quarter 2025 implied revenue guidance suggests a particularly strong organic growth rate, which could materialize if the company executes as expected.

Stifel also expressed that if Archrock achieves its projected growth targets, investors might become more enthusiastic about the company’s revenue growth potential for fiscal year 2026.

In other recent news, Archrock Inc. reported its second-quarter 2025 earnings, surpassing Wall Street expectations. The company achieved an earnings per share of $0.39, slightly above the forecast of $0.38. Additionally, Archrock posted a revenue of $383.2 million, exceeding predictions of $364.08 million. Despite these positive earnings results, Evercore ISI adjusted its price target for Archrock, lowering it to $31 from $32 while maintaining an Outperform rating. The firm cited strong demand across all of Archrock’s service territories, highlighting that natural gas production and midstream infrastructure needs are widespread. These developments indicate ongoing interest and activity in the natural gas sector beyond the Permian Basin. Archrock’s recent performance and the analyst’s remarks suggest a dynamic environment for the company.

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