JPMorgan assumed coverage of USA Compression (USAC) with an Underweight rating and price target of $25, up from $24. Strategic leverage to long-term natural gas demand growth, dedicated fleet investments, operational excellence, and well-capitalized producer customers collectively support an attractive contract compression outlook, the analyst tells investors in a research note. The firm says USA Compression’s basin diversification represents a differentiated opportunity set versus Permian-focused contract compression peers. However, it sees a “fuller valuation limiting overall investability” in the shares.
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