In-Depth Examination Of 9 Analyst Recommendations For Kodiak Gas Services

Providing a diverse range of perspectives from bullish to bearish, 9 analysts have published ratings on Kodiak Gas Services KGS in the last three months.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts have set 12-month price targets for Kodiak Gas Services, revealing an average target of $34.89, a high estimate of $40.00, and a low estimate of $31.00. This upward trend is evident, with the current average reflecting a 11.36% increase from the previous average price target of $31.33.

Understanding Analyst Ratings: A Comprehensive Breakdown

A clear picture of Kodiak Gas Services's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Kodiak Gas Services. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Kodiak Gas Services compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Kodiak Gas Services's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Kodiak Gas Services analyst ratings.

Discovering Kodiak Gas Services: A Closer Look

Kodiak Gas Services Inc is an operator of contract compression infrastructure in the United States. It manages business through two operating segments namely Compression Operations and Other Services. Compression Operations consist of operating company-owned and customer-owned compression infrastructure for customers, pursuant to fixed-revenue contracts to enable the production, gathering and transportation of natural gas and oil. Other Services consist of a full range of contract services to support the needs of customers, including station construction, maintenance and overhaul and other ancillary time and material-based offerings.

A Deep Dive into Kodiak Gas Services's Financials

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: Kodiak Gas Services's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 52.31%. This signifies a substantial 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: Kodiak Gas Services's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 2.17%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Kodiak Gas Services's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 0.55%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.17%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 1.95, Kodiak Gas Services adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Basics of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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