Citi analyst Spiro Dounis lowered the firm’s price target on Aris Water Solutions to $13 from $20 and keeps a Buy rating on the shares. The analyst cites the company’s 20% EBITDA guidance miss and implied 120% free cash flow miss due to elevated capex for the target drop. The firm says it underappreciated Aris Water’s "torque to slower activity levels." However, the company’s growth projects ramp in the seocnd half of 2023, which could drive greater than 25% exit to exit volume growth, says Citi.
Published first on TheFly
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