Kodiak Gas Services started Overweight at Piper Sandler on Distributed Power Solutions deal

Piper Sandler initiated Kodiak Gas Services (KGS) with an Overweight rating and $78 price target, citing its acquisition of Distributed Power Solutions. This deal positions KGS in the behind-the-meter power generation market for AI data centers. The analyst highlights KGS's stable compression business as a differentiator from peers heavily exposed to cyclical oil and gas markets, valuing the power segment at $1.2M/MW and compression at $45-$50/share despite recent stock pullbacks.