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Investing.com - Texas Capital Securities initiated coverage on USA Compression Partners LP (NYSE:USAC) with a Hold rating and a price target of $23.00 on Monday. According to InvestingPro data, the stock currently trades above its Fair Value, with a P/E ratio of 34.65x and an impressive dividend yield of 8.95%.
The firm noted that USA Compression Partners offers a peer-leading distribution and is one of the largest contract compression providers in the United States, with differentiated exposure to dry gas production. The company has maintained dividend payments for 8 consecutive years, demonstrating strong commitment to shareholder returns.
Texas Capital Securities views the company as an attractive option for income-focused investors in the compression sector that can benefit from long-term structural tailwinds from increasing natural gas demand, but considers the stock fully valued at current levels.
The research firm highlighted that USAC’s management team, which took over in late 2024, is positioning the company for long-term success through balance sheet optimization, pursuit of a shared services model, and disciplined geographic positioning.
Texas Capital Securities indicated it is awaiting a more attractive entry point before becoming more constructive on the stock.
In other recent news, USA Compression Partners LP reported its earnings for the second quarter of 2025, surpassing both earnings and revenue forecasts. The company reported an earnings per share (EPS) of $0.22, exceeding the forecasted $0.21, which reflects a 4.76% surprise. Revenue was reported at $250.13 million, also above the predicted $246.74 million, marking a 1.37% surprise. These results highlight the company’s ability to outperform analysts’ expectations. Investors often closely watch such earnings and revenue figures as they provide insights into the company’s financial health and operational performance. There are no recent updates regarding mergers or acquisitions involving USA Compression. Additionally, no recent analyst upgrades or downgrades have been reported for the company. These developments provide a snapshot of USA Compression’s recent financial performance and market position.
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