US stock futures flounder amid tech weakness, Fed caution
Investing.com - Wells Fargo (NYSE:WFC) raised its price target on Aris Water Solutions Inc (NYSE:ARIS) to $25.00 from $23.00 on Tuesday, while maintaining an Equal Weight rating on the stock. According to InvestingPro data, ARIS currently trades at $23.69, with a market capitalization of $1.42 billion and maintains a GOOD overall financial health score.
The price target adjustment follows Aris Water’s second-quarter results, which Wells Fargo described as "in line" with expectations, and reflects the pending merger with Western Midstream Partners (NYSE:WES). The company has demonstrated solid performance with a 16.4% revenue growth and maintains healthy liquidity with a current ratio of 1.73.
The new $25 price target specifically accounts for the cash component offered by WES in the pending merger transaction, according to Wells Fargo’s analysis.
Under the terms of the merger agreement, Aris Water Solutions shareholders will receive either 0.625 WES units for each ARIS share or $25 in cash.
Wells Fargo maintained its Equal Weight rating on Aris Water Solutions stock, citing the pending merger as the primary factor in its neutral stance.
In other recent news, Aris Water Solutions reported second-quarter 2025 Adjusted EBITDA of $54.6 million, surpassing both Stifel’s estimate of $52.6 million and the consensus expectation of $53.4 million. Western Midstream Partners announced a merger agreement to acquire Aris Water Solutions in a deal valued at approximately $1.5 billion, with a total enterprise value of about $2 billion. Under this agreement, Aris shareholders will receive 0.625 common units of Western Midstream for each Aris share, with an option for $25.00 per share in cash, subject to a $415 million cash cap. Following this announcement, Stifel downgraded Aris Water Solutions from Buy to Hold and adjusted its price target from $30.00 to $25.00. Texas Capital Securities also lowered its price target for Aris Water Solutions to $25.00 while maintaining a Buy rating. Additionally, Aris Water Solutions extended its Water Gathering and Disposal Agreement with ConocoPhillips (NYSE:COP) to 2040, continuing their collaboration in the Northern Delaware Basin. These developments mark significant changes for Aris Water Solutions in the current market landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.