Aris Water Solutions: Strong Positioning and Growth Potential Justify Buy Rating

Aris Water Solutions (ARIS – Research Report), the Utilities sector company, was revisited by a Wall Street analyst today. Analyst Selman Akyol from Stifel Nicolaus maintained a Buy rating on the stock and has a $30.00 price target.

Selman Akyol has given his Buy rating due to a combination of factors that highlight Aris Water Solutions’ strong positioning and growth potential. The company reported first-quarter results that exceeded expectations, aided by deferred costs, and maintains a positive outlook for the first half of 2025. Despite some uncertainty, Aris’s focus on the Permian Basin and its alignment with major customers like Chevron and Occidental Petroleum suggest a resilient future.
Furthermore, Aris is actively pursuing opportunities beyond its core business, such as the McNeill Ranch acquisition, which has attracted more interest than anticipated. The development of an iodine extraction facility, expected to be operational by early 2026, and potential ventures into magnesium, ammonia, and lithium extraction, indicate promising growth avenues. Although lower skim oil revenues pose a challenge, they are considered manageable. The company’s financial position, with a leverage ratio below its target, and the potential for capital expenditure adjustments, further support the Buy rating.