JPMorgan assumes coverage of Aris Water Solutions stock with Neutral rating

Published 29/07/2025, 12:54
JPMorgan assumes coverage of Aris Water Solutions stock with Neutral rating

Investing.com - JPMorgan has assumed coverage of Aris Water Solutions Inc (NYSE:ARIS) with a Neutral rating and a price target of $25.00 for December 2026. The target aligns with InvestingPro analysis showing the stock as slightly undervalued, with analyst targets ranging from $23.00 to $34.04.

The coverage was previously handled by a different analyst at the firm who maintained a Neutral rating with a higher December 2025 price target of $31.00.

JPMorgan cited several factors contributing to the company’s year-to-date underperformance, including forecasted Permian crude production pullback in 2026, regulatory-driven increased capital intensity for water disposal in New Mexico, an evolving competitive market landscape, and unclear legal risks.

Despite these challenges, the investment bank noted that Aris Water Solutions’ prime Northern Delaware acreage and strategic alignment with well-capitalized producer customers support a resilient outlook, with the company remaining confident in near-term produced water volume growth.

JPMorgan also highlighted the company’s capital allocation approach as pragmatic, with organic expansion efforts and accretive bolt-on acquisitions supporting targeted dividend growth.

In other recent news, Aris Mining Corporation reported a 13% increase in gold production for the first half of 2025, totaling 113,415 ounces. The company is on track to meet its full-year production guidance of 230,000 to 275,000 ounces, with expectations of increased output in the latter half of the year due to the commissioning of its expanded Segovia mill. Additionally, Aris Mining has agreed to sell its Juby Gold Project in Ontario to McFarlane Lake Mining Limited for $22 million, including a 25% joint venture stake in the nearby Knight property. Meanwhile, Aris Water Solutions Inc. announced the results of its 2025 Annual Meeting of Stockholders, where Amanda M. Brock, Jacinto J. Hernandez, and W. Howard Keenan, Jr. were elected as Class I Directors. In analyst updates, Goldman Sachs reiterated its Buy rating for Aris Water Solutions, adjusting the price target to $28.00, with expectations of second-quarter 2025 EBITDA at $54 million. Furthermore, Lennox International (NYSE:LII) Inc. has formed a joint venture with Ariston Group to introduce a new line of residential water heaters in the U.S. and Canada. This collaboration aims to combine Lennox’s distribution network with Ariston’s expertise in water heating technology.

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