Aris Water Solutions downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded Aris Water Solutions (ARIS) to Neutral from Overweight with a price target of $22, up from $19, after its Q3 earnings beat. The company’s structural operating expense reductions and capital expenditure belt tightening efforts underpin its improved results, free cash flow, and increased capital allocation optionality, and Aris’s results in Q3 affirmed this trajectory with the beat and raise, the analyst tells investors in a research note. The firm adds however that the stock’s year-to-date outperformance of 155% total return versus the 37% AMNA Index benchmark could detract from incremental investor interest.