Energy Sector Analysts Offer Mixed Views on Kodiak Gas Services and Nabors Industries

Analysts have conflicting sentiments on Kodiak Gas Services (KGS) and Nabors Industries (NBR), with a Moderate Buy consensus rating for KGS and a Moderate Sell rating for NBR. Stifel Nicolaus analyst Selman Akyol maintained a Buy rating for KGS with a $47.00 price target, while TR | OpenAI – 4o upgraded the stock to Buy with a $35.00 price target. Nabors Industries has a Moderate Sell rating with a price target consensus of $34.17, a 7.0% upside from current levels.

Analysts have conflicting sentiments on Kodiak Gas Services (KGS) and Nabors Industries (NBR), with a Moderate Buy consensus rating for KGS and a Moderate Sell rating for NBR. Stifel Nicolaus analyst Selman Akyol maintained a Buy rating for KGS with a $47.00 price target, while TR | OpenAI – 4o upgraded the stock to Buy with a $35.00 price target. Nabors Industries has a Moderate Sell rating with a price target consensus of $34.17, a 7.0% upside from current levels.

Kodiak Gas Services has seen robust analyst support, with Stifel and TR | OpenAI both maintaining Buy ratings. Stifel's $47.00 price target represents an ~27% upside from the current price of $36.87, aligning with the broader analyst consensus that remains strongly bullish with an average rating of 1.45 (1.0 = Strong Buy) [1]. The research firm updated its estimates for the company, citing several factors that influenced its model while keeping the overall price target unchanged. According to InvestingPro data, three analysts have recently revised their earnings estimates upward for the upcoming period, suggesting growing confidence in the company’s prospects. The company maintains robust financial health with a 61.8% gross profit margin and 31% revenue growth over the last twelve months. Stifel noted that its revised model primarily accounts for higher total horsepower coming online for Kodiak Gas Services and the subsequent impact on revenue per horsepower. The firm also adjusted its model to reflect a shift in capital expenditures to be more weighted toward the third quarter of the year. Additionally, Stifel incorporated a minor increase in selling, general, and administrative expenses (SG&A) in its updated financial projections for the company.

In other recent news, Kodiak Gas Services reported impressive second-quarter 2025 earnings, surpassing expectations with an earnings per share of $0.43, compared to the forecasted $0.40. The company also achieved revenue of $322.84 million, significantly higher than the anticipated $230.46 million. In a strategic move, Kodiak repurchased $50 million of its common stock from Frontier TopCo Partnership, L.P., an affiliate of EQT (ST:EQTAB) Infrastructure funds. This transaction involved 1,508,750 shares at $33.14 per share and was unanimously approved by a special committee of independent directors. Raymond James adjusted its price target for Kodiak Gas Services, lowering it from $51.00 to $48.00, while maintaining an Outperform rating. The firm cited improvements in Kodiak’s core Contract Compression business, despite a weaker outlook for Other Services in the latter half of 2025. These developments reflect the company’s strategic efforts to enhance its financial standing and operational efficiency.

Nabors Industries, on the other hand, has received a Moderate Sell rating from analysts, with a price target consensus of $34.17, a 7.0% upside from current levels. The company, which owns and operates a land-based drilling rig fleet, has faced challenges in the industry, leading to the downgrade in ratings. The company operates through five segments: U.S. Drilling, International Drilling, Drilling Solutions, and Rig Technologies. Its services include tubular running services, wellbore placement solutions, directional drilling, measurement-while-drilling, logging-while-drilling systems and services, equipment manufacturing, rig instrumentation and optimization software. Through its subsidiaries, it manufactures and sells top drives, catwalks, wrenches, draw works, and other drilling related equipment which are installed on both onshore and offshore drilling rigs. It approximately marketed 290 rigs for land-based drilling operations in the United States and various countries. Despite the challenges, Nabors Industries continues to operate in various international markets and remains a significant player in the drilling industry.

References:
[1] https://www.investing.com/news/analyst-ratings/stifel-reiterates-buy-rating-on-kodiak-gas-services-stock-maintains-47-price-target-93CH-4204471
[2] https://www.marketscreener.com/news/nabors-industries-sells-quail-tools-subsidiary-to-superior-energy-for-600-million-ce7c51d2d18ff125