Natural Gas Services Group (NGS) Downgraded to 'Outperform'

The share price of Natural Gas Services Group, Inc. (NYSE:NGS) fell by 2.18% between January 9 and January 16, 2026, putting it among the Energy Stocks that Lost the Most This Week.

Natural Gas Services Group, Inc. (NYSE:NGS) specializes in providing high-performance compression solutions tailored to the needs of the oil and natural gas industry.

On January 13, Raymond James downgraded Natural Gas Services Group, Inc. (NYSE:NGS) from ‘Strong Buy’ to ‘Outperform’. However, the analyst also increased the stock’s price target from $34 to $42, indicating an upside of almost 25% from current levels.

Raymond James believes that the compression sector looks to have a healthy runway, driven by an increase in natural gas demand due to growth in the US LNG export capacity, as well as the rising energy consumption by data centers.

Despite having a slow start to the new year, the share price of Natural Gas Services Group, Inc. (NYSE:NGS) has gained by more than 23% over the last 12 months.

While we acknowledge the potential of NGS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.