A Closer Look at 4 Analyst Recommendations For Aris Water Solutions
In the latest quarter, 4 analysts provided ratings for Aris Water Solutions (NYSE:ARIS), showcasing a mix of bullish and bearish perspectives.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 0 | 1 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 1 | 0 | 0 | 0 | 0 |
| 2M Ago | 1 | 0 | 1 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
Insights from analysts' 12-month price targets are revealed, presenting an average target of $13.88, a high estimate of $16.00, and a low estimate of $11.00. This upward trend is apparent, with the current average reflecting a 12.12% increase from the previous average price target of $12.38.
Analyzing Analyst Ratings: A Detailed Breakdown
In examining recent analyst actions, we gain insights into how financial experts perceive Aris Water Solutions. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| John Mackay | Goldman Sachs | Raises | Buy | $16.00 | $14.50 |
| John Mackay | Goldman Sachs | Raises | Buy | $14.50 | $13.00 |
| Praneeth Satish | Wells Fargo | Raises | Equal-Weight | $11.00 | $9.00 |
| Spiro Dounis | Citigroup | Raises | Buy | $14.00 | $13.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Aris Water Solutions. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Aris Water Solutions compared to the broader market.
- Price Targets: Delving into movements, analysts provide estimates for the future value of Aris Water Solutions's stock. This analysis reveals shifts in analysts' expectations over time.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Aris Water Solutions's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
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Delving into Aris Water Solutions's Background
Aris Water Solutions Inc is an environmental infrastructure and solutions company that helps customers reduce their water and carbon footprints. It has two primary revenue streams. The Produced Water Handling business gathers, transports, and, unless recycled, handles produced water generated from oil and natural gas production. The Water Solutions business develops and operates recycling facilities to treat, store and recycle produced water.
Key Indicators: Aris Water Solutions's Financial Health
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: Over the 3 months period, Aris Water Solutions showcased positive performance, achieving a revenue growth rate of 25.65% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.
Net Margin: Aris Water Solutions's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 4.09%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 1.32%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Aris Water Solutions's ROA stands out, surpassing industry averages. With an impressive ROA of 0.32%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: With a below-average debt-to-equity ratio of 1.35, Aris Water Solutions adopts a prudent financial strategy, indicating a balanced approach to debt management.
How Are Analyst Ratings Determined?
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.