Wells Fargo initiated coverage of Kodiak Gas Services with an Overweight rating and $93 price target. With 69% of operations in the Permian Basin, Kodiak is positioned to benefit from growing Permian gas supply, the analyst tells investors in a research note. The firm says the Permian gas supply growth supports the company's compression and new behind-the-meter power business, which should drive "peer-leading" EBITDA growth of 13%.
