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Investing.com - Stifel has reiterated its Buy rating on Kodiak Gas Services Inc (NYSE:KGS) while maintaining its $47.00 price target. The target represents an ~27% upside from the current price of $36.87, aligning with the broader analyst consensus that remains strongly bullish with an average rating of 1.45 (1.0 = Strong Buy).
The research firm updated its estimates for the company, citing several factors that influenced its model while keeping the overall price target unchanged. According to InvestingPro data, three analysts have recently revised their earnings estimates upward for the upcoming period, suggesting growing confidence in the company’s prospects. The company maintains robust financial health with a 61.8% gross profit margin and 31% revenue growth over the last twelve months.
Stifel noted that its revised model primarily accounts for higher total horsepower coming online for Kodiak Gas Services and the subsequent impact on revenue per horsepower.
The firm also adjusted its model to reflect a shift in capital expenditures to be more weighted toward the third quarter of the year.
Additionally, Stifel incorporated a minor increase in selling, general, and administrative expenses (SG&A) in its updated financial projections for the company.
In other recent news, Kodiak Gas Services reported impressive second-quarter 2025 earnings, surpassing expectations with an earnings per share of $0.43, compared to the forecasted $0.40. The company also achieved revenue of $322.84 million, significantly higher than the anticipated $230.46 million. In a strategic move, Kodiak repurchased $50 million of its common stock from Frontier TopCo Partnership, L.P., an affiliate of EQT (ST:EQTAB) Infrastructure funds. This transaction involved 1,508,750 shares at $33.14 per share and was unanimously approved by a special committee of independent directors. Additionally, Raymond (NSE:RYMD) James adjusted its price target for Kodiak Gas Services, lowering it from $51.00 to $48.00, while maintaining an Outperform rating. The firm cited improvements in Kodiak’s core Contract Compression business, despite a weaker outlook for Other Services in the latter half of 2025. These developments reflect the company’s strategic efforts to enhance its financial standing and operational efficiency.
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