Are you looking for the next big winner in the investing world? Select Water Solutions may just be that company, according to a recent analysis by Citi. As experts in sustainable water services for the oil and gas industry, Select Water Solutions has made a strategic pivot towards its water infrastructure business, focusing on the management and recycling of produced water.
At Extreme Investor Network, we believe that this shift in focus could lead to significant gains for investors. By moving away from the volatile and cyclical completions activity in their water services business, Select Water Solutions is positioning themselves for higher and more stable margins. In fact, Citi analyst Scott Gruber recently upgraded shares of Select Water Solutions to a buy rating and raised the price target to $13, signaling a potential 40% upside from current levels.
What sets Select Water Solutions apart from its competitors is its current trading discount. While the company is trading at just over four times its earnings before interest, taxes, depreciation, and amortization over the next 12 months, its competitor Aris Water Solutions is trading near a 6.5 multiple. This discrepancy presents a unique opportunity for investors to capitalize on potential growth in Select Water Solutions.
As Gruber pointed out in his analysis, Select Water Solutions’ Infrastructure growth is being accelerated by mergers and acquisitions, which could drive the stock price higher in the coming months. With the downside risk to slowing demand for frac water potentially behind us due to higher oil prices, now may be the perfect time to consider adding Select Water Solutions to your investment portfolio.
At Extreme Investor Network, we pride ourselves on providing valuable insights and analysis to help our readers make informed investment decisions. Stay ahead of the curve and consider adding Select Water Solutions to your watchlist today.
