In a report released today, Jason Gabelman from TD Cowen maintained a Buy rating on Williams Co, with a price target of $70.00.
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Jason Gabelman has given his Buy rating due to a combination of factors that highlight Williams Co’s promising growth trajectory and strategic investments. The company has demonstrated a strong historical performance with a 9% EBITDA compound annual growth rate (CAGR) over the past five years, and it anticipates continuing this momentum with an 8% growth through 2030. This growth is supported by Williams Co’s confidence in expanding its project portfolio, including pre-final investment decision data center projects, which are expected to drive future earnings.
Moreover, Williams Co’s strategic investments in Power Innovation and transmission projects are set to maintain a healthy leverage ratio, projected to fall to 3x by 2027. The company’s $5.1 billion investment in Power Innovation retains a favorable 5x EBITDA multiple, indicating efficient capital deployment. With additional projects anticipated in the coming years and a robust partnership network, Williams Co is well-positioned to capitalize on future opportunities, justifying the raised price target to $70 and the Buy rating.
According to TipRanks, Gabelman is a 4-star analyst with an average return of 6.7% and a 56.54% success rate. Gabelman covers the Energy sector, focusing on stocks such as Chevron, Exxon Mobil, and Shell.
In another report released yesterday, Stifel Nicolaus also reiterated a Buy rating on the stock with a $69.00 price target.