Wunderlich Securities Expects Business Model To Hold Up For Natural Gas Services Group

In a report published Tuesday, Wunderlich Securities analyst Jason A. Wangler reiterated a Buy rating and $40.00 price target on Natural Gas Services Group, Inc. (NYSE: NGS).

In the report, Wunderlich Securities noted, “Natural Gas Services Group (NGS) has seen its stock fall dramatically with the rest of the energy world as concerns over oil prices continue to weigh heavily on the industry. We thought it might be helpful to walk through the advantages NGS brings investors given its sticky business and long-lived rental agreements that have very low break-even prices, are needed for wells to produce and utilization rates on the liquids side remains robust. Despite these positives the company has seen its stock decline with the group and we think it is a good time to circle back and walk through the value proposition at NGS.”

Natural Gas Services Group, Inc. closed on Monday at $22.04.