Morgan Stanley analyst Robert Kad has maintained their bullish stance on WMB stock, giving a Buy rating on February 6.
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Robert Kad has given his Buy rating due to a combination of factors demonstrating Williams Co’s financial strength and growth potential. The company has shown a robust performance with its distributable cash flow reaching $1,115.1 million, despite a slight miss compared to Morgan Stanley’s estimate of $1,219.8 million. This indicates a solid cash generation capability that supports the company’s operations and potential future investments.
Furthermore, the firm’s leverage ratio stands favorably at 3.79x, close to the Morgan Stanley estimate of 3.69x, suggesting a manageable debt level relative to earnings. Although the free cash flow after dividends was negative at $37.2 million, the overall financial health reflects resilience in the face of market challenges. These elements combined portray a positive outlook that justifies the Buy rating.
According to TipRanks, Kad is a 5-star analyst with an average return of 12.4% and a 67.94% success rate. Kad covers the Energy sector, focusing on stocks such as MPLX, Antero Midstream, and Enterprise Products Partners.
In another report released on February 6, Mizuho Securities also maintained a Buy rating on the stock with a $63.00 price target.