Flowco Analysts See Market Expansion, Strong Margins, Double-Digit Growth Ahead

Since its IPO in January, shares of Flowco Holdings Inc (NYSE:FLOC) are trading lower by almost 3%.

Here are some key analyst takeaways from their respective initiation notes.

JPMorgan On Flowco

Analyst Arun Jayaram initiated coverage with an Overweight rating and price target of $32.

Flowco is a "pure-play artificial lift company focused on U.S. shale," and is the industry leader in high pressure gas lift (HPGL) systems, Jayaram said in a note. The demand for the company's vapor recovery units (VRUs) is also tied to the "oil and gas industry’s production optimization needs," he added.

According to research and consulting firm Rystad's estimates, the HPGL market could nearly double to $2.3 billion by 2030, while the VRU TAM (total addressable market) could grow by around 40% to $9.6 billion during this time, the analyst stated. Flowco has a strong balance sheet which allows it to invest in strategic initiatives, drive inorganic growth or "capitalize in the event of a dislocation in the markets," he further wrote.

Check out other analyst stock ratings.

BMO Capital Markets On Flowco

Analyst Phillip Jungwirth began coverage with an Outperform rating and price target of $33.

Flowco is likely to grow revenues by 14% to $837 million in 2025 and by 14% to $950 million in 2026, accelerating from 10% in 2024, Jungwirth said in a note. Growth is likely to be "weighted towards continued HPGL market penetration," he added.

The company generates industry-leading EBITDA margins and delivers "attractive corporate returns," the analyst stated. "We expect strong top-line growth, along with positive segment (Product Solutions) and product (HPGL) mix to drive continued margin expansion," he further wrote.

Piper Sandler On Flowco

Analyst Derek Podhaizer initiated coverage with an Overweight rating and price target of $34.

"Flowco’s unique story within the production phase of the well lifecycle appears to resonate with investors, giving the market a way to invest in the E&P opex theme vs. the capex cycle," Podhaizer said. The company fills the void left by ChampionX Corp (NASDAQ:CHX) after it was acquired by Schlumberger NV (NYSE:SLB) last year, he added.

While peers are expecting 2025 to be a down year and 2026 to be a year of uncertainties, Flowco has projected double-digit revenue growth in both years, the analyst stated.

FLOC Price Action: Shares of Flowco had declined by 0.24% to $28.58 at the time of publication on Monday.

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