USA Compression upgraded to Neutral from Underperform at Mizuho

Mizuho upgraded USA Compression to Neutral from Underperform with a price target of $26, up from $23. The analyst says the tailwinds that have catalyzed USA Compression’s strong operational performance remain intact as a tight compression market should allow for higher unit margins, longer contract tenors and higher fleet utilization. Adherence to capital discipline from outsourced compression providers coupled with supply growth expectations should allow the current up-cycle to persist medium-term, the analyst tells investors in a research note. The firm believes the company will capitalize on its “midstream” attributes without cutting its distribution.