UBS maintains $74 target on Williams Companies stock

Tuesday

UBS analysts have reiterated a Buy rating and a $74.00 price target on Williams Companies (NYSE:WMB), emphasizing the company’s strategic plans for its pipeline projects. Williams Companies is aiming to begin construction of the Northeast Supply Enhancement (NESE) project in the third quarter of 2025, with an anticipated in-service date (ISD) in the fourth quarter of 2027. The company is also hopeful that its Constitution pipeline will receive Federal Energy Regulatory Commission (FERC) approvals by August 2026, begin construction in October 2026, and be operational by July 2027.

During the first quarter earnings call, Williams Companies’ CEO Alan Armstrong pointed out that the NESE project is more straightforward to initiate compared to the Constitution pipeline due to its simpler permitting process. Armstrong also mentioned the potential collaboration between the Constitution and Millennium pipelines to serve the Northeast markets if the latter proceeds.

At the Energy Infrastructure and Investor Conference, Williams Companies’ management reiterated the higher likelihood of NESE moving forward compared to the Constitution project. The company owns 100% of the NESE project, whereas it is not seeking to develop the Constitution pipeline independently. Instead, Williams Companies is looking to partner with others for the Constitution project’s advancement. For detailed analysis of Williams Companies’ financial health, growth prospects, and 12 additional exclusive ProTips, visit InvestingPro, where you’ll find comprehensive Pro Research Reports covering what really matters for informed investment decisions.

In other recent news, Williams Companies has seen a series of notable developments. Wells Fargo (NYSE:WFC) has maintained an Overweight rating on the company, raising the price target to $67, citing robust growth potential and a projected 11% three-year compound annual growth rate in EBITDA. Meanwhile, RBC Capital Markets reiterated an Outperform rating with a $63 price target, highlighting the company’s strategic initiatives, including the Socrates infrastructure project. CFRA, however, downgraded Williams Companies from Buy to Hold, maintaining a $62 price target due to valuation concerns, despite raising its 2025 earnings per share estimate to $2.15.

Stifel increased its price target to $63, following Williams Companies’ first-quarter 2025 results, which slightly exceeded projections, and noted the company’s confidence in financing future projects. Raymond (NSE:RYMD) James also raised its price target to $64 and reaffirmed an Outperform rating, emphasizing the company’s solid operational strategy and positive long-term outlook. The company’s recent earnings report showed an adjusted EBITDA of $1.989 billion, surpassing estimates from both Raymond James and other analysts. Despite some mixed segment results, Williams Companies’ available funds from operations exceeded expectations, aligning with its strong dividend growth rate. These developments come amid a CEO transition and ongoing strategic evaluations, which investors are closely monitoring.

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