BMO Capital has increased its 12-month price target for Flowco Holdings (NYSE:FLOC) to $26.00, up from $24.00, while retaining an Outperform rating on the stock. At the time the analyst action was noted, Flowco was trading around $22.02, and investing-area data cited analyst targets in a $25 to $30 range, suggesting room for upside relative to current market pricing.
The analyst upgrade follows Flowco’s agreement to acquire Valiant Artificial Lift Solutions, a private operator focused on Electric Submersible Pumps (ESPs) that conducts its operations exclusively in the Permian Basin. The transaction brings ESP technology into Flowco’s product set and expands the company’s ability to supply alternative artificial lift options to customers when High Pressure Gas Lift (HPGL) is a less attractive choice.
BMO Capital highlighted that Flowco had previously flagged the possibility of adding ESP capability since its initial public offering, and that the Valiant deal aligns with that strategic objective. The firm also described the acquisition as accretive to earnings and noted that the purchase price represented a multiple below Flowco’s own valuation. BMO pointed to potential revenue synergies from basin expansion, international growth and cross-selling between ESPs and Flowco’s existing lift solutions.
Data from InvestingPro referenced in the analyst commentary underscores strong recent top-line momentum at Flowco, showing 76% revenue growth over the last twelve months. The company’s valuation metrics include a trailing price-to-earnings ratio of 11.85 and a financial health assessment characterized as strong. InvestingPro also identified operational strengths such as moderate leverage and solid profitability.
Operational and financial updates from the company include its third-quarter 2025 results, where Flowco reported earnings per share of $0.32, missing the $0.38 consensus and generating a 15.79% negative surprise versus analyst expectations. In parallel with the Valiant purchase agreement, Flowco announced the acquisition consideration of approximately $200 million, to be paid with a combination of cash and stock, and set a target close date in March 2026.
Shareholder returns remain part of Flowco’s capital policy, with a declared quarterly dividend of $0.08 per share. The dividend is payable on February 25, 2026, to holders of record as of February 13, 2026.
Market commentary from other brokerages included Piper Sandler’s continued Overweight rating and an unchanged $28.00 price target, which the firm maintained after meetings with Flowco management. Piper Sandler described those meetings as encouraging despite recent volatility in Flowco’s share price.
Taken together, the analyst reactions framed the Valiant acquisition as a meaningful expansion of Flowco’s product suite that could enable broader commercial engagement with customers across the Permian Basin and potentially in international markets. The deal’s accretive nature and the valuation differential noted by BMO were central to the higher target, while the recent EPS miss and the mechanics of closing the acquisition remain items for investors to monitor.
Company overview
Flowco Holdings supplies artificial lift solutions to the oil and gas industry. The planned integration of Valiant’s ESP assets represents a material expansion of the company’s technical offerings and geographic concentration in the Permian Basin.