Select Water Solutions Gains $22 Target as Water Infrastructure Hits 58% EBITDA by 2030
WTTR•Bank of America opened coverage on Select Water Solutions with a Buy rating and $22 price target, highlighting transition to higher-margin water infrastructure. The firm projects water infrastructure to account for 58% of adjusted EBITDA by 2030 and forecasts adjusted EBITDA rising from $315 million in 2026 to $417 million in 2028.
1. Coverage Initiation and Rating
Bank of America initiated coverage on Select Water Solutions with a Buy rating and set a $22 price target, citing the company's strategic pivot from cyclical oilfield services to stable, higher-margin water infrastructure operations.
2. Transformation to Water Infrastructure
Select Water’s water infrastructure business, focused on produced-water recycling and disposal in the Permian Basin, is expected to represent 58% of adjusted EBITDA by 2030, up from 45% in 2025 and just 8% in 2019.
3. Financial Outlook
Analysts forecast adjusted EBITDA of $315 million in 2026, rising to $417 million by 2028, propelled by expanding recycling capacity, increased water handling volumes and a forecast rebound in U.S. oil completions.
4. Growth Drivers and Risks
Key growth catalysts include tightening disposal capacity in the Delaware Basin and emerging recycled water demand for data center cooling, while execution challenges, oil price volatility and market competition pose potential risks.
