Microvast Holdings announces departure of chief financial officer
Tuesday, CFRA analysts downgraded Williams Companies stock (NYSE:WMB) from Buy to Hold, maintaining a price target of $62.00. The downgrade was attributed to valuation, as the stock is trading at over a 20% premium to its historical forward average. Current metrics from InvestingPro support this view, with the stock trading at a P/E ratio of 32.3x and near its 52-week high of $61.66. CFRA’s Stewart Glickman pointed out that while the prospects for natural gas demand and Williams Companies’ role in gas logistics are improving, the current share price has already incorporated significant multiple expansion.
Glickman noted that the $62 price target represents a 12.8x multiple of the company’s enterprise value to its projected 2026 EBITDA. This multiple is higher than the company’s historical average but is justified by the positive outlook for the natural gas sector and Williams Companies’ involvement in it. Despite the downgrade, the firm raised its 2025 earnings per share (EPS) estimate for Williams Companies by $0.08 to $2.15, while the 2026 EPS estimate remains unchanged at $2.35.
Williams Companies is anticipated to benefit from the growth in liquefied natural gas (LNG) exports, given its extensive pipeline and processing network. Glickman’s comments suggest that while the company is positioned to capitalize on industry trends, the stock’s current price reflects much of the expected growth.
Investors in Williams Companies are currently receiving a dividend yield of 3.3%. This yield is a factor for shareholders, especially those looking for steady income from their investments. InvestingPro data reveals the company has maintained dividend payments for 52 consecutive years and has raised its dividend for 7 straight years, with an 11.7% growth in the last twelve months.
The analyst’s remarks indicate a belief that Williams Companies has strong fundamentals and is likely to play a significant role in the expanding natural gas market. However, the stock’s recent performance has led to a valuation that CFRA deems too high to warrant a Buy rating at this time. This aligns with InvestingPro’s analysis, which indicates the stock is currently overvalued, despite maintaining a "GOOD" overall Financial Health score of 2.57 out of 5.
In other recent news, Williams Companies reported its financial results for the first quarter of 2025, surpassing analysts’ expectations with an earnings per share (EPS) of $0.60, compared to the forecast of $0.58, and revenue of $3.05 billion, exceeding the expected $2.83 billion. The company also announced a 5.3% increase in its quarterly dividend. Furthermore, Williams Companies raised its adjusted EBITDA guidance midpoint to $7.7 billion for 2025, indicating a 9% growth from 2024. In related developments, Stifel analysts increased the price target for Williams Companies shares to $63.00, citing the company’s strong financial performance and strategic initiatives. Raymond (NSE:RYMD) James followed suit, adjusting the price target to $64, while reaffirming an Outperform rating, highlighting Williams Companies’ consistent operational strategy and robust long-term outlook. Additionally, the company has been advancing its natural gas strategy with new projects and has received a credit rating upgrade to BBB+ from S&P. These recent developments underscore Williams Companies’ continued focus on growth and financial stability.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.