Aris Water Solutions stock holds steady as Stifel maintains $25 price target

Investing.com - Stifel reiterated its Hold rating and $25.00 price target on Aris Water Solutions Inc (NYSE:ARIS), a $1.38 billion market cap water management company, following the company’s second-quarter earnings report. The stock has demonstrated remarkable strength, gaining over 15% in the past week.

The water management company reported second-quarter 2025 Adjusted EBITDA of $54.6 million, exceeding Stifel’s estimate of $52.6 million and consensus expectations of $53.4 million.

According to Stifel, the earnings outperformance was primarily driven by lower-than-expected net general and administrative costs during the quarter.

Aris Water Solutions declared a quarterly dividend of $0.14 per share for the second quarter of 2025, which aligned with Stifel’s projections.

The stock was trading at $23.34 at the time of Stifel’s analysis, representing a modest discount to the firm’s maintained $25.00 price target.

In other recent news, Aris Water Solutions has entered into a significant merger agreement with Western Midstream Partners (NYSE:WES). The deal, valued at approximately $2 billion, involves an equity-and-cash transaction in which Aris shareholders will receive common units of Western Midstream or opt for cash, subject to a maximum total cash consideration. Following this merger announcement, Stifel downgraded Aris Water Solutions from Buy to Hold and adjusted its price target to $25.00. Similarly, Texas Capital Securities lowered its price target for the company to $25.00 but maintained a Buy rating.

Additionally, Aris Water Solutions has extended its Water Gathering and Disposal Agreement with ConocoPhillips (NYSE:COP) by seven years, ensuring the partnership will continue until 2040. This extension preserves the original terms of the agreement, under which Aris provides comprehensive water infrastructure services. Meanwhile, JPMorgan has assumed coverage of Aris Water Solutions with a Neutral rating and a price target of $25.00 for December 2026. These developments reflect ongoing changes and partnerships within Aris Water Solutions, capturing the attention of investors and analysts alike.

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