Key insights from analyst ratings for Kodiak Gas Services – Kodiak Gas Services (NYSE:KGS)

4 analysts have expressed different opinions on Kodiak Gas Services KGS in the last quarter and offers a wide range of opinions from optimistic to pessimistic.

The table below provides a condensed view of their recent ratings, showing the changing sentiments over the past 30 days and comparing them to previous months.

Insights are presented from analysts’ 12-month price targets, which represent an average target of $32.25, a high estimate of $35.00, and a low estimate of $29.00. This uptrend is clearly evident, with the current average representing a 6.33% increase from the previous average price target of $30.33.

Deciphering Analyst Ratings: A Closer Look

A thorough analysis of recent analyst actions paints a clear picture of how financial professionals perceive Kodiak Gas Services. The following summary provides an overview of the key analysts, their recent reviews, and adjustments to their ratings and price targets.

Key findings:

• Action taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they “maintain,” “increase,” or “decrease” their rating reflects their reaction to recent developments related to Kodiak Gas Services. This information provides a snapshot of how analysts perceive the current state of the company.
• Evaluation: Analysts provide qualitative insights into stock performance, ranging from outperform to underperform. These ratings convey expectations for Kodiak Gas Services’ relative performance compared to the overall market.
• Price targets: Analysts set price targets as an estimate of a stock’s future value. Comparing current and past price targets provides insight into how analysts’ expectations have changed over time. This information can be valuable to investors who want to understand consensus opinions about the stock’s potential future performance.

To gain valuable insights into Kodiak Gas Services market performance, consider these analyst ratings alongside key financial indicators. Stay well-informed and make prudent decisions with the help of our scorecard.

Stay up to date with analyst ratings for Kodiak Gas Services.

Delve into the background of Kodiak Gas Services

Kodiak Gas Services Inc. is an operator of contracted compression infrastructure in the United States. The Company operates its business through two business segments, namely Compression Operations and Other Services. Compression Operations involves operating company-owned and customer-owned compression infrastructure for customers under fixed revenue contracts to facilitate the production, gathering and transportation of natural gas and oil. Other Services includes a full range of contracted services to support customer needs, including station construction, maintenance and overhaul, and other time and material-based value-added offerings.

Kodiak Gas Services: A look at the finances

Market capitalization analysis: The company’s market capitalization is below industry benchmarks and reflects a smaller size compared to peers. This positioning may be influenced by factors such as growth expectations or operating capacity.

Sales growth: Kodiak Gas Services’ revenue growth over a 3-month period has been remarkable. As of June 30, 2024, the company achieved a revenue growth rate of approximately. 52.31%. This indicates a significant increase in the company’s revenue. Compared to other companies in the energy sector, the company performed excellently with a growth rate above the average of its competitors.

Net margin: The company’s net margin is below industry averages, indicating potential difficulties in achieving high profitability. With a net margin of 2.17%, The company may face challenges in effectively controlling costs.

Return on equity (ROE): Kodiak Gas Services’ return on equity is below the industry average, indicating difficulties in efficiently using equity. With a return on equity of 0.55%, The company may encounter obstacles in achieving optimal returns for shareholders.

Return on assets (ROA): The company’s ROA is below industry benchmarks, indicating potential difficulties in the efficient use of assets. With an ROA of 0.17%, The company may face challenges in generating a satisfactory return on its assets.

Debt management: The company faces challenges in debt management with a debt-to-equity ratio above the industry average. With a ratio of 1.95Due to the increased financial risk, caution is advised.

The basics of analyst ratings

Analysts work in banking and finance and typically specialize in reporting on stocks or specific sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish “analyst ratings” on stocks. Analysts typically rate each stock once per quarter.

Some analysts also offer forecasts for metrics such as growth estimates, earnings and revenue to provide further guidance on stocks. Investors who use analyst ratings should be aware that this specialized advice is human and may contain errors.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.