WaterBridge Infrastructure stock initiated at Equal Weight by Wells Fargo

Investing.com - Wells Fargo initiated coverage on WaterBridge Infrastructure (NYSE:WBI) with an Equal Weight rating and a price target of $25.00 on Monday. The target price aligns closely with the current trading price of $24.17, with InvestingPro data showing the company commands a market capitalization of nearly $3 billion.

The investment bank cited WBI’s sector-leading growth and its ability to capitalize on pore space scarcity, which has allowed the company to secure higher returns and better contractual terms.

Wells Fargo highlighted that pore space capacity, which refers to subsurface gaps used for water disposal, is becoming increasingly scarce in the Delaware Basin, giving WBI a key strategic advantage.

According to Wells Fargo, WBI and its sister company LandBridge control most of the remaining accessible pore space in the region, allowing WBI to leverage this scarcity for premium pricing.

The firm noted that WBI has secured projects with BPX and DVN at $0.85 per barrel and Speedway at $1.05 per barrel, compared to the current rate of $0.70 per barrel, while also obtaining minimum volume commitments (MVCs) that are rare in the Permian Basin.

In other recent news, WaterBridge Infrastructure has attracted attention from several major investment firms with a series of new stock coverage initiations. Raymond James began its coverage with an Outperform rating and a $30.00 price target, highlighting the company’s potential in the Delaware Basin’s water management sector. Texas Capital Securities also initiated coverage with a Buy rating and a $32.00 price target, emphasizing WaterBridge’s extensive infrastructure network. Piper Sandler took a more cautious approach, initiating with a Neutral rating and a $27.00 price target, while acknowledging WaterBridge’s significant presence in the Delaware Basin. Similarly, Goldman Sachs also issued a Neutral rating but with a lower price target of $21.00, pointing to the company’s strong underground disposal capacity. Morgan Stanley provided an Equalweight rating and a $32.00 price target, recognizing WaterBridge as a key player in water infrastructure services. These recent developments reflect varying perspectives on WaterBridge’s market position and growth potential.

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