Tate Sullivan, an analyst from Maxim Group, maintained the Buy rating on Natural Gas Services Group (NGS – Research Report). The associated price target is $35.00.
Tate Sullivan has given his Buy rating due to a combination of factors, including the company’s strong financial performance and positive future outlook. Natural Gas Services Group reported a higher-than-expected EBITDA for the fourth quarter of 2024, which exceeded both the company’s guidance and market consensus. This strong performance was driven by improved adjusted gross margins, particularly in the rental segment, which is the company’s primary revenue source.
Furthermore, the company has introduced optimistic EBITDA guidance for 2025, indicating a potential year-over-year increase. The increased capital expenditure guidance for 2025 suggests a growing demand for larger natural gas compressors, which bodes well for future revenue growth. Additionally, the company’s solid balance sheet, with a leverage ratio well below the covenant limit, provides confidence in its ability to fund capital expenditures and sustain growth. These factors collectively support the Buy rating and the $35 price target set by Sullivan.
According to TipRanks, Sullivan is an analyst with an average return of -12.6% and a 34.54% success rate. Sullivan covers the Industrials sector, focusing on stocks such as Seanergy Maritime, Tetra Tech, and BWX Technologies.
In another report released on March 18, Raymond James also maintained a Buy rating on the stock with a $32.00 price target.