Kodiak Gas Services initiated with an Equal Weight at Barclays

Barclays analyst Theresa Chen initiated coverage of Kodiak Gas Services with an Equal Weight rating and $19 price target. The company has critical natural gas assets levered to the “prolific” Permian and Eagle Ford production regions as well as a successful history of commercial execution, the analyst tells investors in a research note. However, these positives are balanced by Kodiak’s equity overhang as sponsor EQT continues to own 79% of the stock and will likely sell down its interest over time, says the firm.