Kodiak Gas Services price target raised to $45 from $40 at Truist

Truist raised the firm’s price target on Kodiak Gas Services (KGS) to $45 from $40 and keeps a Buy rating on the shares. The firm notes Kodiak announced that private equity owner EQT sold 5.5M shares, taking their company holdings to 38.5M shares or about 43% of total shares outstanding. The sale comes largely as investors expected with Kodiak Gas Services continuing to suggest the private equity owner would monetize much of their existing position. However, Truist continues to believe the sale in no way changes the owners’ opinion of the company as Kodiak Gas Services operations continue to set records. As such, Truist believes Kodiak Gas Services’ trading multiple deserves to continue to re-rate much like other leading midstream operators.