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Investing.com - Jefferies initiated coverage on Williams Companies (NYSE:WMB) with a Buy rating and a price target of $72.00 on Thursday. The stock, currently trading at $63.50 and near its 52-week high of $65.55, has demonstrated strong momentum with a 32.56% return over the past year.
The research firm projects a 17% implied total shareholder return for the natural gas infrastructure company, citing an estimated 7% EBITDA compound annual growth rate through 2030.
Jefferies’ bullish outlook is driven by three key factors, including over $8 billion of Transmission Capital Expenditure through 2030, which supports the projected EBITDA growth.
The firm also highlighted Williams’ Power Innovation segment, which could potentially contribute 10% toward total EBITDA by 2028, as well as LNG growth supporting Haynesville gathering and processing operations.
Jefferies acknowledged several risks to its thesis, including Williams’ "perceived rich valuation," potential permitting challenges, and execution risks related to power generation initiatives.
In other recent news, Williams Companies has been the focus of multiple analyst updates and strategic developments. BMO Capital initiated coverage on Williams Companies with an Outperform rating, citing the company’s strong financial outlook and growth potential. UBS reiterated its Buy rating and maintained a $74.00 price target, noting an accelerated timeline for the company’s Southeast Supply Enhancement Project, which is now expected to start in the third quarter of 2027. Stifel also reaffirmed a Buy rating, highlighting the company’s growth strategy centered around natural gas and increased demand from sectors like LNG exports and power generation.
Wells Fargo raised its price target for Williams Companies to $70.00, maintaining an Overweight rating, despite the company’s underperformance following its second-quarter results. Additionally, Williams Companies’ CEO Chad Zamarin shared insights on Bloomberg TV, projecting that liquid natural gas (LNG) will grow to account for over 25% of the US gas market in the next decade. This forecast reflects a significant increase from the current 15%. These developments underscore the company’s strategic focus on expanding its natural gas infrastructure and capitalizing on growing market demands.
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