Should I Buy WES? WES 2026 Analysis

Should You Buy Western Midstream Partners LP (WES) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

41.780

1 Day change

1.63%

52 Week Range

43.330

Analysis Updated At

2026/01/26

Western Midstream Partners LP (WES) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong dividend yield, stable cash flows, and positive financial growth trends make it a compelling choice despite some short-term technical weaknesses.

Technical Analysis

The technical indicators suggest a bearish trend in the short term, with the MACD histogram below zero and negatively expanding, RSI at 42.827 (neutral), and bearish moving averages (SMA_200 > SMA_20 > SMA_5). Key support and resistance levels are Pivot: 38.895, R1: 39.666, S1: 38.123, R2: 40.143, S2: 37.646.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Western Midstream declared a quarterly dividend of $0.91 per share, maintaining an 8.92% yield.
The company has restructured contracts with Occidental Petroleum, enhancing production capacity and maintaining stable cash flow.
Revenue and net income have shown strong YoY growth in Q3 2025, with revenue up 7.82% and net income up 17.73%.

Neutral/Negative Catalysts

Hedge funds are significantly selling, with a 2124.68% increase in selling activity over the last quarter.
Analysts have mixed views, with some lowering price targets due to lower operating cash flows and higher cost reductions.
Technical indicators show a bearish short-term trend.

Financial Performance

In Q3 2025, Western Midstream's revenue increased by 7.82% YoY to $952.48M, net income rose by 17.73% YoY to $331.73M, and EPS grew by 17.57% YoY to $0.87. However, gross margin dropped slightly by -0.97% YoY to 76.74%.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts have mixed ratings. RBC Capital raised the price target to $42, citing strong financial flexibility and high-end EBITDA guidance. Stifel raised the target to $43, reflecting the company's strong Q3 performance. However, Wells Fargo lowered the target to $39, citing lower operating cash flows and higher cost reductions.

4 Analyst Rating

Wall Street analysts forecast WES stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for WES is 40.5 USD with a low forecast of 39 USD and a high forecast of 42 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

0 Buy

4 Hold

0 Sell

Hold

Current: 41.110

Low

Averages

40.5

High

Current: 41.110

Low

Averages

40.5

High

Wells Fargo

Ned Baramov

Equal Weight

downgrade

$40 -> $39

AI Analysis

2026-01-22

Reason

Wells Fargo

Ned Baramov

Price Target

$40 -> $39

AI Analysis

2026-01-22

downgrade

Equal Weight

Reason

Wells Fargo analyst Ned Baramov lowered the firm's price target on Western Midstream to $39 from $40 and keeps an Equal Weight rating on the shares. The firm is trimming its 2026 and beyond estimates to reflect the net impact of lower operating cash flows, lower 2026 capex, lower unit count & distributions, and higher assumed cost reductions.

RBC Capital

Elvira Scotto

Sector Perform

maintain

$39 -> $42

2025-11-28

Reason

RBC Capital

Elvira Scotto

Price Target

$39 -> $42

2025-11-28

maintain

Sector Perform

Reason

RBC Capital analyst Elvira Scotto raised the firm's price target on Western Midstream to $42 from $39 and keeps a Sector Perform rating on the shares. The firm is updating its model after the company's recent Q3 earnings and expectation to be near the high-end of its 2025 adjusted EBITDA guidance, the analyst tells investors in a research note. Western Midstream's strong balance sheet provides financial flexibility to execute growth plans and to support underlying operations during periods of commodity price headwinds, RBC added.

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WES Should I Buy

WES Should I Buy

Should You Buy Western Midstream Partners LP (WES) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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