Mizuho analyst Gabriel Moreen initiated coverage of Kodiak Gas Services with an Outperform rating and $36 price target the analyst believes Kodiak has visibility to growth over the medium-term, supported by tailwinds for the compression industry at-large and a “well-defined” capital allocation framework allowing for higher capex intensity than peers. The company is differentiated versus contract compression peers by virtue of its favorable Permian concentration and younger fleet, which should translate to better growth and higher profit margins, the analyst tells investors in a research note.
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