Williams Co (WMB) has received a new Buy rating, initiated by BMO Capital analyst, Ameet Thakkar.
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Ameet Thakkar has given his Buy rating due to a combination of factors that highlight Williams Co’s strong position within the natural gas midstream sector. The company is recognized for its robust financial outlook, characterized by an anticipated 8% annual growth in EBITDA from 2024 to 2029, and a stable dividend yield of 3.5%. This growth is supported by a fee-based business model and a pipeline of promising projects, particularly in the power sector, which is expected to drive significant future expansion.
A key component of Thakkar’s positive outlook is Williams Co’s flagship Transco asset, which is strategically positioned to capitalize on increasing power demand. Despite trading at a notable discount compared to the broader market and other energy infrastructure sectors, the company offers a compelling investment opportunity with its focus on demand-centric projects. Thakkar’s valuation of $66 per share is based on a detailed discounted cash flow analysis and a sum-of-the-parts approach, reflecting a significant discount to the S&P 500, thus reinforcing the Buy recommendation.
In another report released on September 12, UBS also maintained a Buy rating on the stock with a $74.00 price target.
Based on the recent corporate insider activity of 61 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of WMB in relation to earlier this year.