Williams Co’s Strategic Investments and Growth Potential Justify Buy Rating and Increased Price Target

In a report released yesterday, Praneeth Satish from Wells Fargo maintained a Buy rating on Williams Co (WMB – Research Report), with a price target of $67.00.

Praneeth Satish’s rating is based on several compelling factors that highlight Williams Co’s (WMB) potential for significant growth. The analyst has increased the price target to $67, reflecting a positive outlook on the company’s investments in behind-the-meter (BTM) power projects. These investments are expected to reach a $2 billion annual run-rate, driven by increasing demand for AI power, strategic turbine procurement plans, and strong relationships with hyperscaler customers. This strategic positioning is anticipated to lead to a sector-leading EBITDA compound annual growth rate (CAGR) of 11% over three years, significantly outpacing the median growth of its peers.
Additionally, Satish emphasizes the long-term value creation potential of WMB’s projects, such as the Socrates initiative, which is expected to yield returns better than the current 5x EBITDA target. The sum-of-the-parts (SOTP) valuation framework suggests that WMB’s stock is undervalued, with a projected net present value (NPV) of $66 per share by 2030. This indicates that WMB is poised to outperform as its growth projects mature and contribute to its financial performance, justifying the Buy rating and the anticipated premium over its peers.

In another report released yesterday, RBC Capital also reiterated a Buy rating on the stock with a $63.00 price target.

Based on the recent corporate insider activity of 54 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.