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Valuation & Risks ( AROC ) Disclosure / Price Chart(s) / Valuation & Risk
Fundamental Equity Research
Our $31 target price is based on our NPV methodology and assumes an 11% cost of equity and 12% cap rate and implies an ~8.0x 2027E EV/EBITDA multiple.

While there’s minimal direct commodity exposure and fleets have generally been high-graded to better withstand downcycles, we view a prolonged commodity downturn as the key risk to our thesis and to the stock's ability to reach our target price. A weaker production outlook, particularly in the Permian, could result in less demand for new compression capacity and potential shut-ins could lead to the eventual return of equipment from the field, thus resulting in lower utilization.

 

 

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