New York, Jan 14, 2026, 10:22 ET — Regular session.
- NGS shares nudged higher in early trading as fresh downgrades turned attention back to valuation
- Raymond James downgraded its rating but raised the price target to $42
- Investors are turning their attention to the upcoming earnings report for clues on 2026 gas compression demand
Shares of Natural Gas Services Group edged up roughly 0.2% to $34.26 Wednesday morning, despite recent downgrades from analysts at Zacks and Raymond James over the last two days.
The timing is key since the stock has hovered close to its one-year peak. The recent calls underline a common friction: solid operational momentum against a price that’s already pushed higher. Zacks downgraded its rating from “strong-buy” to “hold,” MarketBeat reported. 1
On Tuesday, Raymond James shifted gears with Natural Gas Services Group, cutting its rating to “outperform” from “strong buy” but lifting the 12-month price target to $42 from $34, according to GuruFocus. The move came from analyst James Rollyson, the report said. 2
Raymond James downgraded the stock, citing its “relative share outperformance and narrowing valuation gap,” according to a note reported by Investing.com. The firm still described industry demand as “a healthy runway,” pointing to expected growth in gas demand from LNG exports and power needs driven by AI and data centers. It also highlighted that Natural Gas Services runs nearly 1,900 compression units with over 625,000 horsepower — ranking it fourth in horsepower among public contract compression providers. 3
Natural Gas Services Group rents and services natural gas compression equipment vital to oil and gas production and processing. The company also designs and assembles compressor units, offering aftermarket call-out and commissioning services. 4
The company competes in a packed U.S. contract compression market alongside bigger public players like Archrock, Kodiak Gas Services, and USA Compression Partners. Investors watch this group closely for clues on pricing strength, utilization rates, and the pace at which producers ramp up new gas output.
Traders are focusing on the blend of downgrades paired with higher price targets. It signals that analysts remain bullish on demand, yet expect limited upside from multiple expansion following the stock’s recent surge.
The setup can shift fast. Should producers cut back, or if delays hit midstream and LNG expansions, demand for compression and fleet use could drop — and with lofty expectations, there’s little room to absorb a downturn.
The company’s upcoming quarterly report is the next major trigger, expected between late March and early April. MarketBeat pins the date at March 16, while Investing.com suggests April 7. 5
Investors will be keeping an eye on upcoming analyst updates and any company remarks that clarify the 2026 forecast for fleet growth, utilization rates, and pricing in large-horsepower compression.
