WaterBridge Infrastructure (WBI) PT Raised to $36 at Goldman Sachs

Goldman Sachs analyst John Mackay raised the price target on WaterBridge Infrastructure (NYSE: WBI) to $36.00 (from $32.00) while maintaining a Buy rating.

The analyst comments "We refresh our estimates for WaterBridge (WBI, Buy) following a constructive message on Speedway growth at 1Q26 earnings. The quarter was stronger than expected on better costs / produced water margin. Combined with management's conservative assumptions on skim oil pricing and Speedway Ph 1 in-service timing, new 2026 EBITDA guidance of $425-465 looks achievable; we are now at the high-end with $463m, vs. consensus of $457m. More meaningful was another constructive update on Speedway Ph 2, with continued strong commercial momentum allowing both market share gains and resilient/growing margins, and we now model the project at 300 kb/d by 2030E vs. 100 kb/d prior. Our estimates increase +6% on average through 2030 and we now see a 16% 2026-30E EBITDA CAGR. Despite a higher assumed capital intensity going forward (as higher pipeline volumes should require higher gathering/disposal spend), we still see a ~low-teens free cash flow yield in 2028+ and multiple compression of ~6-7x turns from 2026 to 2030E; our midstream coverage average is just ~2.5x over that period. Our price target increases to $36 (from $32 prior), reflecting a ~13x 2026E EBITDA multiple but ~6x on 2030E, and we remain Buy rated."

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