What Makes Archrock (AROC) Appear so Attractive

Archrock Inc. (NYSE:AROC) is one of the 10 best oil and gas equipment & services stocks to buy according to hedge funds.

As of the April 10 close, Archrock Inc. (NYSE:AROC) had a strongly bullish consensus sentiment. The stock received coverage from 7 analysts, all of whom assigned Buy ratings. It has a projected median 1-year price target of $40, implying upside potential of more than 11%.

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On April 2, Mizuho reiterated its Outperform rating for Archrock Inc. (NYSE:AROC). The firm also increased the target price from $32 to $38. It expects strength in the natural gas compression sector due to good fundamentals, although price increases from Archrock are expected to be modest.

Back on March 16, RBC Capital also increased its target price for Archrock Inc. (NYSE:AROC) from $32 to $40, resulting in a double-digit upside potential of more than 11% at the current level. The firm reiterated its Outperform rating.

This upward revision in price target follows highly favorable demand trends for natural gas. According to the firm, the company directly stands to benefit from this as the underlying capacity utilization, operational pricing, and overall demand for both new and current horsepower remain consistently solid.

Archrock Inc. (NYSE:AROC) works as an energy infrastructure organization providing natural gas compression services. It does that by developing, installing, and maintaining its fleet of compression gear. It also offers maintenance and repair services in addition to selling over-the-counter parts and accessories to clients who own such equipment.

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