Kodiak Gas Services price target raised to $48 from $41 at Citi

Citi raised the firm’s price target on Kodiak Gas Services (KGS) to $48 from $41 and keeps a Buy rating on the shares as part of a Q4 earnings preview. The higher target reflects increased free cash flow estimates driven by ongoing pricing tailwinds, the analyst tells investors in a research note. The firm continues to see a multi-year runway for further price increases across Kodiak’s fleet. Current spot prices are greater than 20% above the current fleet average and likely much higher relative to contracts that are set to reprice in 2025, contends Citi.