Key insights
- Goldman Sachs raised its price target for WaterBridge Infrastructure (WBI) to $36, citing strong Q1 2026 results and an optimistic outlook for its Speedway Phase 2 project. The firm increased its 2026 EBITDA projection and now expects significant growth in produced water volumes. Despite potential multiple compression, Goldman Sachs anticipates a healthy EBITDA CAGR and free cash flow yield, suggesting a positive, albeit moderate, influence on related infrastructure or energy sector equities.
Investing.com - Goldman Sachs raised its price target on WaterBridge Infrastructure (NYSE:WBI) to $36 from $32 while maintaining a Buy rating on the stock.
The firm updated its estimates following the company’s first-quarter 2026 earnings, which showed stronger-than-expected results driven by better costs and produced water margins. The stock has surged 48% year-to-date to $29.46, trading below Goldman’s new target, though InvestingPro data suggests the shares may be overvalued relative to its Fair Value estimate. Goldman Sachs now projects 2026 EBITDA of $463 million, at the high end of management’s guidance range of $425 million to $465 million, compared with consensus estimates of $457 million.
The firm noted continued commercial momentum for the Speedway Phase 2 project, which is now expected to reach 300,000 barrels per day by 2030, up from a previous estimate of 100,000 barrels per day. According to InvestingPro Tips, two analysts have recently revised their earnings upwards, supporting the optimistic growth outlook. For deeper insights, WaterBridge is among the 1,400+ US equities covered by comprehensive Pro Research Reports, which transform complex Wall Street data into actionable intelligence. Goldman Sachs increased its estimates by an average of 6% through 2030 and now forecasts a 16% EBITDA compound annual growth rate from 2026 to 2030.
The firm expects WaterBridge to generate a low-teens free cash flow yield in 2028 and beyond, despite assuming higher capital intensity as increased pipeline volumes require greater gathering and disposal spending. Goldman Sachs projects the company’s valuation multiple will compress to approximately 6 to 7 times EBITDA by 2030 from current 2026 levels.
The new $36 price target reflects an approximately 13 times 2026 EBITDA multiple and approximately 6 times 2030 EBITDA multiple.
In other recent news, Waterbridge Infrastructure LLC announced its first-quarter 2026 earnings, reporting earnings per share (EPS) of $0.08. This figure fell short of analysts’ expectations, which had projected an EPS of $0.14. Despite the earnings miss, the company has adjusted its full-year guidance upwards, signaling a positive outlook for the remainder of the year. These developments suggest that Waterbridge remains optimistic about its future performance, even after the recent earnings disappointment. The company’s decision to raise its guidance could be seen as a strategic move to reassure investors. While the earnings miss might be a concern, the updated guidance reflects confidence in upcoming quarters. Investors will likely keep an eye on how Waterbridge’s future earnings align with these revised projections.
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