Goldman Sachs has raised its price target for Kodiak Gas Services Inc (NYSE:KGS) to $46.00 from $42.00 and kept a Buy rating in place as the company approaches its fourth-quarter 2025 earnings report. The revised target implies roughly an 11.5% upside from the stock’s most recent quote of $41.26.
Market-data cited by InvestingPro shows the shares have returned 34% over the past six months, and the relative strength index currently indicates the stock may be in overbought territory.
Analyst estimates and drivers
Goldman Sachs’ near-term forecast places Kodiak’s Q4 2025 EBITDA at $179 million. That figure is slightly under the consensus view of $181 million and below Goldman’s own prior estimate of $182 million. The bank points to sequential drivers that include full-quarter pricing benefits from the horsepower units added in Q3 2025, partially offset by fewer new unit additions and a decline in activity within Other Services.
On a trailing-12-month basis, InvestingPro reports Kodiak’s EBITDA at $701.68 million.
For 2026, Goldman reduced its EBITDA projection to $747 million, down from an earlier $756 million estimate and below the consensus of $759 million. The revision reflects several explicit assumptions: fewer new unit additions because mid-2025 crude volatility affected the timing of orders; more modest pricing gains resulting from a smaller pool of recontracting opportunities; and the possibility of management adopting more conservative cost-reduction assumptions.
InvestingPro data shows that two analysts have recently lowered their earnings forecasts for the coming period, though the firm notes Kodiak is still expected to remain profitable this year.
Market position and growth opportunities
Despite the downward adjustments to near-term EBITDA, Goldman Sachs characterizes the compression market as robust, with pricing trends intact and Kodiak’s orderbook extending into 2027. The bank indicates that the company’s core compression business remains healthy.
Supporting that view, InvestingPro records 19.43% revenue growth for Kodiak over the last twelve months and assigns a financial health score of "GOOD." Those metrics feed into Goldman’s decision to raise the price target, along with identified growth vectors such as expansion into behind-the-meter power applications and the potential for compression purchase-leaseback transactions with existing customers.
Goldman also notes Kodiak’s shareholder-return posture: the company has increased its dividend for three straight years, with dividend growth of 19.51% over the last twelve months. The current yield sits at 4.75%.
Other broker actions and corporate developments
Recent analyst moves and corporate transactions add further context. Barclays upgraded Kodiak from Equalweight to Overweight, citing natural gas volumetric growth. Mizuho reduced its price target to $44 from $47 after Kodiak’s Q3 2025 results while maintaining an Outperform rating.
In a material ownership change, Frontier TopCo Partnership, an affiliate of EQT Infrastructure, disclosed the sale of its remaining 9.7 million-share stake in Kodiak Gas Services. That transaction will end EQT’s participation in the company, terminate the Stockholders’ Agreement, and remove its right to nominate board members.
Separately, Kodiak plans to begin a dual listing of its common stock on NYSE Texas alongside its primary New York Stock Exchange listing. The dual listing is scheduled to start on November 25, 2025. These items were highlighted as part of the company’s ongoing corporate activity.
What this means for investors
Goldman’s upgraded target reflects a measured balance: a higher valuation underpinned by growth opportunities and sustained pricing dynamics, paired with slightly lower near-term earnings expectations because of timing and recontracting assumptions. The firm’s view suggests confidence in the structural strength of Kodiak’s core business while acknowledging short-term volatility in unit additions and pricing cadence.
Investors and analysts tracking Kodiak will likely focus on the upcoming Q4 2025 results for confirmation of the pricing benefit run-rate from new horsepower units, the company’s commentary on order timing, and any guidance on cost-reduction plans.