RBC Capital Maintains Outperform Rating on Kodiak Gas Services (KGS) After 'Solid' Q3 Results

Kodiak Gas Services, Inc. (NYSE:KGS) ranks among the best energy stocks with huge upside potential. On November 18, RBC Capital maintained its Outperform rating while increasing its price target for Kodiak Gas Services, Inc. (NYSE:KGS) from $43 to $45. According to the firm, the price target hike comes after Kodiak’s “solid” third-quarter 2025 results, which were somewhat offset by a one-time cost associated with the company’s disposal of its holdings in Mexico.

Kodiak Gas Services, Inc. (NYSE:KGS) missed its earnings per share prediction for the third quarter, with earnings per share of $0.36 compared to an expected $0.42. However, the company exceeded revenue estimates, generating approximately $322 million versus the expected $234.76 million.

RBC stated that natural gas demand should continue to sustain Kodiak Gas Services, Inc. (NYSE:KGS)’s contracted development plans, with 2026 capital needs “effectively fully under contract” since large horsepower compression continues to be practically fully employed.

Kodiak Gas Services, Inc. (NYSE:KGS) runs contract compression infrastructure for its clients in the oil and gas industry in the U.S. The company operates through two segments, Compression Operations and Other Services.

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Disclosure: None. This article is originally published at Insider Monkey.