Select Water Solutions stock initiated with Buy rating at Texas Capital

Investing.com - Texas Capital Securities initiated coverage on Select Water Solutions, Inc (NYSE:WTTR) with a Buy rating and a price target of $18.00 on Monday. The $1.18 billion market cap company, currently trading at $9.83, has seen its stock decline 9.4% over the past week, though analysts maintain a Strong Buy consensus.

The research firm views Select Water Solutions as a market leader in full lifecycle water solutions that offers investors exposure at an attractive relative valuation.

Texas Capital Securities highlighted the company’s ongoing transformation to an infrastructure-led business model, which is replacing volatile activity-based revenue with more stable, predictable cash flows from long-term contracts.

The firm believes Select’s recycling-oriented business model is well-positioned to capitalize on a secular shift toward water recycling in the industry.

According to Texas Capital Securities, Select Water Solutions offers investors "a compelling combination of growth and value" through its business strategy.

In other recent news, Select Water Solutions reported its Q2 2025 earnings, which fell short of analyst expectations. The company posted an earnings per share of $0.10, missing the anticipated $0.12, while revenue reached $364.22 million, slightly below the expected $367.53 million. Additionally, Select Water Solutions announced a dual listing on the newly launched NYSE Texas, maintaining its primary listing on the New York Stock Exchange. This move marks the company as a Founding Member of the electronic equities exchange based in Dallas. In another development, the company entered into new severance agreements with four of its executive officers. The agreements aim to standardize compensation arrangements and support efforts to attract and retain executive talent. These recent developments indicate ongoing strategic adjustments within Select Water Solutions.

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