Texas Capital Securities Upgrades USA Compression Partners LP (USAC) to Buy

Texas Capital Securities analyst Nate Pendleton upgraded USA Compression Partners LP (NYSE: USAC) from Hold to Buy with a price target of $31.00 (from $26.00).

The analyst comments: "In our view, USA Compression is set up for outperformance in 2026 following continued strong financial and operational excellence, tightening industry capacity, and a unique geographic reach that includes scaled operations across the Permian, Appalachia, Gulf Coast, Mid-Con, and Rockies. We think USA Compression currently trades at attractive levels (~7% discount to peer average on 2027E fwd. EV/EBITDA) while delivering a peer-leading distribution of ~8%. We expect the accretive acquisition of J-W Power to further improve the outlook as those assets are repriced, and provides additional optionality through the specialty manufacturing business and potential deployment of ~50,000 HP. With continued structural tailwinds for contract compression (LNG and AI data center power demand), increasingly tight capacity (+100 weeks for new units), and opportunities for value creation internally (fleet expansion, J-W synergies), we view USA Compression as an attractive option to gain exposure to the sector."

For an analyst ratings summary and ratings history on USA Compression Partners LP click here. For more ratings news on USA Compression Partners LP click here.

Shares of USA Compression Partners LP closed at $27.81 yesterday.

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