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Investing.com - Texas Capital Securities downgraded Aris Water Solutions Inc (NYSE:ARIS) from Buy to Hold while maintaining its price target of $25.00. The stock currently trades at $23.67, with InvestingPro data showing a P/E ratio of 28.43 and revenue growth of 16.42% over the last twelve months.
The downgrade follows Aris Water Solutions’ August 6, 2025 announcement that it entered into a definitive agreement to be acquired by Western Midstream Partners (NYSE:WES) LP in a combined equity and cash transaction.
The acquisition deal values Aris Water Solutions at an enterprise value of approximately $2.0 billion, according to Texas Capital Securities.
Texas Capital Securities maintained its $25.00 price target on Aris Water Solutions stock despite the rating downgrade from Buy to Hold.
The research firm also noted it has updated its financial model for Aris Water Solutions to reflect the company’s quarterly results and revised commodity price assumptions.
In other recent news, Aris Water Solutions reported second-quarter 2025 Adjusted EBITDA of $54.6 million, surpassing Stifel’s estimate of $52.6 million and consensus expectations of $53.4 million. The company is set to be acquired by Western Midstream Partners in a deal valued at approximately $2 billion. Aris shareholders will have the option to receive either 0.625 common units of Western Midstream or $25.00 per share in cash, with a maximum cash consideration of $415 million. Following this merger announcement, Stifel downgraded Aris Water Solutions from Buy to Hold and adjusted its price target to $25.00 from $30.00. Similarly, Texas Capital Securities lowered its price target for Aris to $25.00 from $30.00 but maintained a Buy rating. Wells Fargo (NYSE:WFC) also revised its price target to $25.00 from $23.00, maintaining an Equal Weight rating, citing the merger as a factor in its decision. These developments reflect significant changes for Aris Water Solutions in the market.
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