Unveiling 4 Analyst Insights On Archrock

In the preceding three months, 4 analysts have released ratings for Archrock AROC, presenting a wide array of perspectives from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Archrock, presenting an average target of $23.75, a high estimate of $25.00, and a low estimate of $22.00. Witnessing a positive shift, the current average has risen by 5.56% from the previous average price target of $22.50.

Deciphering Analyst Ratings: An In-Depth Analysis

An in-depth analysis of recent analyst actions unveils how financial experts perceive Archrock. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Archrock. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Archrock compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Archrock's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of Archrock's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Archrock analyst ratings.

Get to Know Archrock Better

Archrock Inc is an energy infrastructure company with focus on midstream natural gas compression and a commitment to helping customers produce, compress and transport natural gas. It has two business segments, Contract Operations, and Aftermarket Services. Under the umbrella of contract operations services, the company provides operations to meet customers' natural gas compression needs. Services include designing, owning, installing, operating, and maintaining equipment. Aftermarket Services business provides a full range of services to support the compression needs of customers that own compression equipment, including operations, maintenance, overhaul and reconfiguration services and sales of parts and components. It generates maximum revenue from the Contract Operations segment.

Archrock's Financial Performance

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Archrock displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 9.28%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Energy sector.

Net Margin: Archrock's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 12.56% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Archrock's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 3.83%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Archrock's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 1.27%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Archrock's debt-to-equity ratio surpasses industry norms, standing at 1.81. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

How Are Analyst Ratings Determined?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.