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Investing.com - Mizuho (NYSE:MFG) has reiterated an Outperform rating and $67.00 price target on Williams Companies (NYSE:WMB), a $71.7 billion market cap natural gas infrastructure giant, following Tuesday’s sharp 6.5% selloff that outpaced the broader AMEI index decline of 1.7%. According to InvestingPro data, WMB typically trades with low price volatility, making this movement notable.
The natural gas infrastructure company fell alongside other gas-focused entities like KMI and DTM, despite Mizuho viewing the selloff as more technically driven by end-of-quarter positioning rather than fundamental concerns. The company maintains strong fundamentals with $11.1 billion in revenue and an impressive 60% gross profit margin over the last twelve months.
Mizuho highlighted that the restoration of 100% bonus depreciation in the latest Senate-passed budget bill represents potential upside to Williams Companies’ cash flow guidance, offsetting concerns about the bill being "less bad" for renewables.
The firm pointed to Williams’ Northeast pipeline initiatives, including NESE and Constitution projects, which are now advancing and could serve as positive regulatory catalysts for the stock.
Mizuho also noted Williams’ ongoing expansions on transmission and storage assets in the western United States, specifically MountainWest and Northwest Pipeline, which support the growing natural gas demand that continues to build the company’s project backlog.
In other recent news, Williams Companies has been the focus of several key updates that investors may find noteworthy. UBS has maintained its Buy rating on Williams Companies with a $74 price target, while adjusting its second-quarter 2025 EBITDA estimate to $1,796 million, citing changes in operating contributions and expenses. Wolfe Research upgraded the company’s stock from Underperform to Peerperform, highlighting the company’s growth potential and financial flexibility as factors supporting its premium valuation. Additionally, Wells Fargo (NYSE:WFC) raised its price target for Williams Companies from $64 to $67, citing the company’s superior growth prospects and potential for a significant EBITDA growth rate over the next few years.
RBC Capital Markets reiterated its Outperform rating with a $63 price target, expressing confidence in the company’s strategic direction and future projects, particularly the Socrates infrastructure project. This project is designed to serve as a power solution for a linked datacenter and includes a 10-year contract with favorable terms for commercial reassessment. Williams Companies is also planning to begin construction on the Northeast Supply Enhancement project in the third quarter of 2025, with an anticipated operational date in late 2027. Furthermore, UBS noted an expected increase in capital expenditure for the second quarter of 2025, which reflects the company’s ongoing investments in its infrastructure projects. These developments underscore the company’s strategic initiatives and potential for growth in the energy sector.
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