Kodiak Gas' Long-Term Outlook Remains Intact, RBC Says

MT Newswires Live10-16

Kodiak Gas Services' (KGS) long-term outlook remains intact despite near-term timing issue, RBC Capital Markets said in a Thursday note.

RBC analysts made modest adjustments to H2 estimates, primarily reflecting the timing of equipment being relocated and prepared for a power agreement scheduled to begin in Q1 2027.

The report said demand for compression equipment remains supportive of multiyear growth, with deliveries under secured contracts extending through 2029.

Despite recent datacenter backlash, the note said demand remains supportive for behind-the-meter power solutions.

"We believe recent KGS share weakness on the AI rotation

trade provides an attractive entry point," the report said.

RBC kept its outperform rating while lowering its price target to $82 from $88 on the back of a lower Power Infrastructure EBITDA multiple given equipment deployment timing.

Price: 47.71, Change: -0.10, Percent Change: -0.21

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