Kodiak Gas Services price target raised to $31 from $30 at RBC Capital

RBC Capital raised the firm’s price target on Kodiak Gas Services to $31 from $30 and keeps an Outperform rating on the shares following the recent Q2 earnings report. The compression market remains strong with a favorable setup, the analyst tells investors in a research note, adding that Kodiak’s share price pullback is an attractive buying opportunity given Kodiak’s capital discipline coupled with growing natural gas demand that should drive additional compression HP needs. Kodiak’s new unit deliveries are effectively contracted through 2025, which de-risks the story, RBC says.