5-star analyst T J Schultz, of RBC Capital, believes AROC has a firm foundation to move forward. He writes of the stock, “We expect lower associated gas production to have an impact on AROC utilization into 2021, but we think manageable debt leverage and ample dividend coverage provide some flexibility… we think the risk-reward is decent at current levels given AROC’s liquidity, lack of near-term debt maturities, and ability to pull additional levers to manage liquidity further if needed.”
Schultz’s Buy rating on the stock is supported by an $11 price target, which suggests an impressive 68% upside potential for the year. Overall, the Strong Buy analyst consensus rating on AROC is unanimous, based on 3 recent Buy reviews. Shares are priced at $6.55, and the $9.17 average price target implies a one-year upside of 40%.