Bullish indicating open at $55-$60, IPO prices at $37
On Tuesday, Stifel analysts increased the price target for Williams Companies (NYSE:WMB) shares to $63.00, up from the previous $62.00, while reiterating a Buy rating. According to InvestingPro data, the stock is currently trading near its 52-week high of $61.66, with a substantial market capitalization of $71.9 billion. The revision follows Williams Companies’ first-quarter 2025 financial results, which slightly surpassed Stifel’s projections. The firm also adjusted its 2025 EBITDA guidance, raising the midpoint by $50 million.
Williams Companies has been actively advancing its natural gas strategy, as evidenced by the recent announcement of the Socrates and Power Express projects, along with the possibility of two additional behind-the-meter projects. The company’s financial health is rated as GOOD by InvestingPro, with an impressive track record of maintaining dividend payments for 52 consecutive years and a current dividend yield of 3.32%. Stifel noted that despite the numerous growth prospects, Williams Companies is confident in its ability to finance these capital needs, citing the attractive returns of approximately 4 to 6 times EBITDA multiples.
The company’s management is optimistic about potentially achieving the upper end of its targeted 5-7% annual EBITDA growth over the next few years. This growth expectation aligns with the anticipated increase in natural gas demand throughout the remainder of the decade.
Stifel’s analysts have expressed a positive outlook on Williams Companies, describing the firm as "best in class" and well-positioned to capitalize on the expected surge in natural gas demand. The price target increase to $63.00 reflects this sentiment, along with the firm’s confidence in Williams Companies’ strategic initiatives and financial performance.
In other recent news, Williams Companies reported its financial results for the first quarter of 2025, exceeding analysts’ expectations with an earnings per share (EPS) of $0.60, surpassing the forecast of $0.58. The company also reported revenue of $3.05 billion, which was higher than the anticipated $2.83 billion. Despite these strong financial results, the company’s stock experienced a decline in after-hours trading. Additionally, Williams Companies announced a 5.3% increase in its quarterly dividend, now set at $0.50 per share. The company raised its adjusted EBITDA guidance midpoint to $7.7 billion for 2025, indicating a 9% growth from the previous year. S&P upgraded the company’s credit rating to BBB+, reflecting confidence in its financial stability. Analyst firm Raymond (NSE:RYMD) James adjusted the price target for Williams Companies to $64 and reaffirmed an Outperform rating, citing the company’s robust operational strategy and positive long-term outlook. The company is also in the midst of a CEO transition, which has been a focal point for investors.
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