Texas Capital Securities initiates coverage on WaterBridge stock with Buy rating

Published 13/10/2025, 09:46
Texas Capital Securities initiates coverage on WaterBridge stock with Buy rating

Investing.com - Texas Capital Securities initiated coverage on WaterBridge Infrastructure (NYSE:WBI) with a Buy rating and a $32.00 price target on Monday, representing a significant upside from the current stock price of $24.17. According to InvestingPro data, WBI has a market capitalization of nearly $3 billion.

The firm cited WBI’s leading exposure to the Delaware Basin produced water sector through its extensive water infrastructure network with differentiated scale and scope of services.

Texas Capital Securities noted that the company is well-positioned to capitalize on secular growth in produced water volumes in the Delaware Basin, with preferential access to underutilized pore space serving as a competitive advantage.

The research firm described this access to pore space as a "strong competitive moat" that supports a high-quality growth pipeline for the company.

Texas Capital Securities identified WaterBridge as "the clear category leader" in a subsector that it projects will re-rate based on what it describes as a coming "super cycle" for Delaware pore space.

In other recent news, WaterBridge Infrastructure has announced the pricing of $1.425 billion in senior unsecured notes. This offering includes $825 million in 6.25% notes due 2030 and $600 million in 6.50% notes due 2033, with both priced at par. The transaction is anticipated to close on October 6, 2025, pending customary conditions. Additionally, several investment firms have initiated coverage on WaterBridge Infrastructure. Piper Sandler and Goldman Sachs have both given the company a Neutral rating, with price targets of $27.00 and $21.00, respectively. Morgan Stanley has rated the stock as Equalweight, setting a price target of $32.00. Stifel stands out with a Buy rating and a price target of $30.00, highlighting the company’s attractive economics in the Delaware Basin. These developments reflect a range of perspectives from analysts on WaterBridge’s market position and future potential.

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