Citigroup Assigns Neutral Rating to USA Compression Partners

Recent reports indicate that Citigroup has initiated coverage on USA Compression Partners, LP with a neutral recommendation. This move comes alongside projections pointing to potential stock price increases and revenue decreases.

Date: 29-09-2024

AI Rating: 5

Citigroup's initiation of coverage on USA Compression Partners, LP with a Neutral recommendation implies a balanced outlook regarding the stock's performance. Analysts forecast a 16.32% upside from the current stock price of $22.58, which might attract investor interest despite the neutral stance. This potential increase in stock price is reinforced by the average one-year price target of $26.26/share.

However, the report highlights a significant concern with projected annual revenue. A decrease of 9.39% to $822 million raises red flags about the company's growth potential. A reduction in revenue could negatively impact investor sentiment, particularly if this trend continues.

On the earnings side, the projected annual non-GAAP EPS of 0.35 is notable; however, without historical comparisons, its effectiveness in indicating growth or decline is limited.

The market sentiment from institutional investors seems mixed. The report mentions an increase in the number of funds holding shares of USA Compression Partners to 131, up 6.50% from the previous quarter. Additionally, the total shares owned by institutions increased by 33.31%, pointing to a growing institutional interest, which might buoy stock prices.

Nevertheless, a put/call ratio of 1.81 suggests a bearish outlook, indicating potential downside risks as more investors are betting against the stock in options trading.

Stocks: USAC