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On Thursday, Northland upgraded Select Water Solutions, Inc (NYSE:WTTR) stock from Market Perform to Outperform, setting a price target of $14.50.
The firm's confidence in the company's growth strategy within the Water Infrastructure sector has increased following an industry conference attendance. The Water Infrastructure segment is reported to have notably higher margins and is growing faster than WTTR's other two segments.
The analyst noted that this strategic shift is aiding WTTR in its transition from a business heavily reliant on completions to one that is more weighted towards production. This evolution in business strategy is seen as a positive move for the company's future growth and financial stability.
In addition to the upgrade, the analyst expressed heightened confidence in WTTR's advantageous position in the emerging opportunity with beneficial reuse. This aspect of the business is anticipated to contribute to the company's growth and market position.
The price target of $14.50 reflects the firm's assessment of the company's value based on its improved outlook in the Water Infrastructure segment and its potential in the beneficial reuse market. This target suggests a level of performance that the firm expects the company to achieve.
Select Water Solutions, Inc's stock rating upgrade to Outperform indicates that Northland foresees a potential for the company's stock to outperform the average market return. This is based on the company's strategic initiatives and its positioning to capitalize on emerging opportunities within its industry.
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