Archrock price target raised to $27 from $25 at Stifel

Stifel raised the firm’s price target on Archrock (AROC) to $27 from $25 and keeps a Buy rating on the shares after the company reported Q3 results above the firm’s estimates and updated FY24 proforma guidance. Management is optimistic on its outlook for compression, and in particular the prospects for improving gross margins, the analyst tells investors. While not providing 2025 guidance, management highlighted the need to be able to support its customers and “we believe that could translate to higher 2025 growth capex compared to 2024,” the firm added.