Goldman Sachs analyst John Mackay has reiterated their bullish stance on KGS stock, giving a Buy rating on March 11.
John Mackay has given his Buy rating due to a combination of factors including the recent market pullback and the company’s strong performance metrics. Despite recent underperformance and market volatility, Mackay believes that the outlook for Kodiak Gas Services remains positive, particularly due to steady Permian production and the company’s ability to capitalize on tight supply and strong demand.
Additionally, Kodiak Gas Services has demonstrated strong financial performance with a higher-than-expected EBITDA in the fourth quarter, driven by increased gross margins and effective cost synergies from recent acquisitions. The company’s high fleet utilization and successful asset sales further support the Buy rating, as these factors contribute to sustained growth expectations and margin expansion.
In another report released on March 11, RBC Capital also maintained a Buy rating on the stock with a $45.00 price target.
Based on the recent corporate insider activity of 35 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of KGS in relation to earlier this year.