Investing.com -- Bank of America initiated coverage on Select Water Solutions with a ‘Buy’ rating and a $22 price target, as company undergoes a major transformation from a cyclical oilfield services provider into a higher-margin water infrastructure operator with more stable cash flows.
The brokerage said Select’s growing exposure to produced-water recycling and infrastructure in the Permian Basin should reduce earnings volatility and improve long-term profitability. BofA expects water infrastructure to account for 58% of adjusted EBITDA by 2030, up from 45% in 2025 and just 8% in 2019.