RE: Williams Companies (WMB) 49.63 +1.42 (+2.95%)
Williams (WMB, Financial) gained 2.2% after Morgan Stanley upgraded the stock, citing strong growth prospects and favorable contract environments in the natural gas sector. The company's assets are increasingly vital for power grid stability and new demand sources.
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Morgan Stanley has upgraded Williams Companies (NYSE: WMB) from an Equal-Weight to an Overweight rating, raising the price target from $52 to $58. This upgrade reflects a positive outlook on the company's growth potential, particularly in the midstream sector, where investors are increasingly focused on firms with clear growth trajectories. Morgan Stanley projects that Williams will achieve sustainable annual EBITDA growth of 5% to 7%, supported by robust demand for its natural gas pipeline assets, which are crucial for grid stability and emerging sectors like AI and LNG exports 1 2
.The upgrade is also informed by recent investor meetings with Williams' management, which bolstered confidence in the company's growth drivers. Williams Companies has maintained a strong financial position, projecting a 6.5% growth in EBITDA through 2025 and reporting record earnings in its Transmission and Storage segment. The firm has also successfully raised $1.5 billion through a notes offering, enhancing its capital structure for future operations 1 2
.In addition to Morgan Stanley's upgrade, other financial institutions have also raised their price targets for Williams, reflecting a broad consensus on the company's positive outlook. For example, Citi increased its target from $45 to $52, while RBC Capital Markets set a new target of $47 1
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Looks like WMB getting AI love using the NG to power these AI data Center generators
FWIW many/all utilities are higher w/ XLU +28.1% YTD and +42% from the 10/2023 lows |
