Raymond James raises WaterBridge Infrastructure price target on growth

Raymond James has upgraded WaterBridge Infrastructure's stock price target to $40, up from $35, while retaining a Strong Buy rating. The company's shares have risen 59% year-to-date and 32% over the past six months, trading below its fair value. The firm praised WaterBridge Infrastructure's role in managing water produced with oil and gas in the Delaware Basin, positioning it as a premium platform with robust organic growth and a strategic connection to sister company LandBridge.

In Q2 2026, WaterBridge reported adjusted EBITDA of $116 million, surpassing both the firm's estimate of $110 million and analysts' expectations of $111 million. The company, valued at $3.92 billion, trades at a 12.25 EV/EBITDA multiple. WaterBridge raised its 2026 EBITDA and volume guidance, propelled by strategic mergers and acquisitions.

Produced water handling volumes grew 6% quarter-over-quarter to 2.6 million barrels per day, while revenue per barrel increased 2%. Revenue from water solutions saw a significant quarter-over-quarter increase but at a slower rate, with flat revenue. The Speedway project reported positive advancements. WaterBridge's second-quarter revenue for 2026 reached $217.8 million, an 8% increase from the first quarter, though earnings per share fell short of Wall Street expectations.

Despite the miss, the company raised its 2026 guidance and reported an adjusted EBITDA of $115.8 million. JPMorgan has reinstated coverage on WaterBridge Infrastructure with an Overweight rating and a $38.00 price target. Analyst Eli Jossen highlighted the company's strong second-quarter results and upcoming catalysts, including Speedway Phase 1 volumes expected to reach 100,000 barrels per day by year-end with an exit rate projected to exceed this figure.