Jason Gabelman, an analyst from TD Cowen, has initiated a new Buy rating on Williams Co (WMB).
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Jason Gabelman has given his Buy rating due to a combination of factors that highlight Williams Co’s strategic positioning and growth potential. The company’s Transco asset is pivotal as it runs through key regions like the US Gulf Coast and Southeast, which are poised for significant natural gas demand growth. This strategic location allows Williams Co to capitalize on the increasing need for infrastructure to support LNG facilities and data centers, which are expected to drive substantial demand in the coming years.
Furthermore, Williams Co has a robust project backlog valued at $6.7 billion, which includes expansions along the Transco pipeline. These projects are expected to contribute significantly to the company’s earnings, with a forecasted 5% compound annual growth rate in EBITDA from 2024 to 2030. Additionally, the company’s recent initiatives, such as the behind-the-meter natural gas-to-power project in Ohio, further demonstrate its capacity to innovate and capture new market opportunities. These factors collectively support the Buy rating and a price target of $67.
According to TipRanks, Gabelman is a 4-star analyst with an average return of 8.8% and a 59.68% success rate. Gabelman covers the Energy sector, focusing on stocks such as BP, Calumet Specialty Products, and Cheniere Energy.
In another report released on July 2, Mizuho Securities also reiterated a Buy rating on the stock with a $67.00 price target.