Archrock price target raised to $40 from $32 at Raymond James

Raymond James analyst James Rollyson raised the firm’s price target on Archrock (AROC) to $40 from $32 and keeps an Outperform rating on the shares following “solid” Q4 results. Raymond James noted that with momentum in the U.S. natural gas market continuing to build into multiyear volume growth, the outlook for incremental compression demand remains solid. With an industry-leading balance sheet and continued capital discipline, the stage is set for sustainable free cash flow generation at Archrock, even after paying out its growing dividend rate, the firm told investors in a research note.