![]() The $17.82 trading price and $24.25 average price target combine to imply a gain of 36% lying in wait for the coming year. ![]() In its short time as a public entity, Kodiak has already picked up 8 analyst reviews, with a 7 to 1 breakdown favoring Buys over Holds giving the stock its Strong Buy consensus rating. (To watch Dingmann’s track record, click here.) These comments come along with a Buy rating on this newly public stock, and a $24 price target that suggests a 35% upside potential in the next 12 months. We forecast continued solid FCF driving attractive shareholder return and further debt repayment.” KGS remains one of few midstream companies with demand likely to continue to outpace supply for the coming quarters resulting in solid pricing power. The company continues to benefit from a tight gas compression market with limited competition along with company efficiencies that continue to result in nearly 100% horsepower utilization. The Truist analyst writes, “Kodiak delivered solid results for its first quarter as a public company with equally as positive remaining 2023 expectations that include increased spend/earnings. Kodiak’s operations have been generating increased free cash flow over the last 12 months in the year-ago quarter, the company registered a $2.2 million FCF loss, but the current report shows a positive FCF exceeding $33 million.įor Dingmann, Kodiak’s solid niche position and its recent proven ability to generate cash are key points for investor consideration. the same period last year and resulted in EPS of 30 cents. On the bottom line, net income almost doubled vs. The top-line revenue of $203.3 million was up over 14% year-over-year. On August 9, Kodiak released its first quarterly financial results as a public company, and the results showed improving fundamentals. The sale totaled 16 million shares and netted the company $231.4 million in cash proceeds. The shares debuted at $16 per share, a value seen as low – the company had originally set an initial share price between $19 and $22. This past summer, Kodiak entered the realm of publicly traded stocks with an IPO that closed on July 3. In addition to its direct compression services, Kodiak also designs and builds gas compressor stations the firm’s revenue-generating fleet of compressor equipment totals over 3 million horsepower. ![]() ![]() The company has particularly extensive activities in the Permian Basin of West Texas. The company was founded in 2010, and today holds leading positions in many of the major production basins across the US. Kodiak is a contract provider of large-scale compression services and infrastructure in the US gas sector, and describes its services as ‘critical to our customers’ ability to reliably produce natural gas.’ This is a vital step in moving gas from the production sites through the pipelines to the refineries and end users. We’ll start in the natural gas segment, where Kodiak Gas Services is a billion-dollar-plus player in the natural gas industry, offering compression services. Here are the details, along with Dingmann’s comments. Further adding to these stocks’ appeal, according to the TipRanks data, all are also rated as Strong Buys by the analyst consensus, with double-digit upside potential. Dingmann is an energy stock expert and he has been selecting his picks for the coming months, so let’s take a closer look at some of his sector calls and why you might want to ride his coattails.
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