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Investing.com - Northland downgraded Select Water Solutions, Inc (NYSE:WTTR) from Outperform to Market Perform on Thursday, maintaining a price target of $12.00. The water management company currently trades at $10.62, with a market capitalization of $1.29 billion.
The research firm cited valuation concerns as the primary reason for the downgrade, stating that the current 6.0x multiple applied to fiscal year 2026 adjusted EBITDA appears reasonable at current share prices. InvestingPro data shows WTTR trading at a P/E ratio of 55.63 and an EV/EBITDA of 7.12, with the stock’s current price almost exactly matching its Fair Value estimate.
Northland indicated it remains supportive of Select Water Solutions’ long-term strategy and its portfolio of infrastructure assets despite moving to a neutral stance on the stock. The company has delivered impressive returns, with a 26.56% price increase over the past six months.
For a more positive outlook, Northland would need to see significant increases in fiscal year 2026 adjusted EBITDA generation, additional bolt-on projects similar to the company’s recently announced lithium extraction initiative, or improved activity in the U.S. onshore market.
The downgrade comes as Select Water Solutions continues to position itself in the water management and infrastructure sector serving energy producers.
In other recent news, Select Energy Services Inc. reported impressive financial results for the third quarter of 2025. The company exceeded analysts’ expectations with an earnings per share (EPS) of $0.03, significantly higher than the projected $0.0037. This represents an earnings surprise of over 710%. Additionally, Select Energy’s revenue reached $322 million, surpassing the anticipated $307.75 million. These results highlight the company’s strong financial performance in the quarter. The earnings announcement was followed by a slight increase in pre-market trading for the company’s stock. Such positive developments are likely to be of interest to investors monitoring Select Energy’s financial health. These recent developments underscore the company’s ability to outperform market expectations.
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