Archrock Receives Outperform Rating Amid 14.69% Upside Potential

A report highlights Evercore ISI Group's initiation of coverage for Archrock with an 'Outperform' rating, forecasting a 14.69% upside. Despite an increase in institutional interest, a high put/call ratio signals some bearish sentiment.

Date: 26-09-2024

AI Rating: 7

The report indicates that Evercore ISI Group has initiated coverage of Archrock (NYSE: AROC) with an 'Outperform' recommendation, which is a positive indicator for potential investors. Analysts suggest a price increase of 14.69%, with a target of $23.97 per share, up from $20.90, showcasing strong anticipated growth.

The projected annual revenue for Archrock is $1,067 million, reflecting a modest increase of 1.43%. This suggests stability in revenue generation, which could bolster investor confidence in the company.

Additionally, the projected non-GAAP earnings per share (EPS) stands at 0.48. This figure is crucial as it suggests that the company is expected to generate profit relative to its share price, making it potentially attractive to investors.

Moreover, institutional holdings have seen a rise, with 651 funds reporting positions in Archrock, up by 66 in the last quarter. The average portfolio weight dedicated to Archrock increased by 7.45%. However, it is noted that there is a bearish outlook indicated by a put/call ratio of 2.40, suggesting that while some investors are optimistic about price increases, there is also significant caution reflected in derivatives trading.

In terms of ownership changes, notable institutions such as Earnest Partners and Bank of America have adjusted their positions with some increases, while others like Invesco have significantly decreased their allocations. These moves could signal mixed sentiments among major investors.

Stocks: AROC