Wells Fargo Raises PT for Williams Companies (WMB), Keeps Overweight Rating

The Williams Companies, Inc. (NYSE:WMB) is one of the 10 Best Oil and Gas Stocks to Buy Now. On May 28, Wells Fargo raised its price target on The Williams Companies, Inc. (NYSE:WMB) from $64 to $67 but kept an “Overweight” rating. The analysts highlighted the company’s strong growth potential as the main reason for the increased price target.

Wells Fargo suggests that The Williams Companies, Inc. (NYSE:WMB) is currently trading higher than its C-Corp peers, using a 2026 estimated EV/EBITDA multiple of 11.9x for WMB against 10.8x for its peers. WMB is trading at a premium and Wells Fargo analysts believe this premium is fair because of the company’s superior growth prospects.

A bird’s-eye view of an oil & gas midstream platform in the Gulf of Mexico on a clear day.

According to the analysts, The Williams Companies, Inc. (NYSE:WMB) can achieve an 11% compound annual growth rate (CAGR) in EBITDA over three years, which is much higher than the 6% median growth expected from its C-Corp peers.

The analysis by Wells Fargo also indicates that if The Williams Companies, Inc. (NYSE:WMB) and its peer group traded at the same valuation multiple in three years, WMB should command a 1.5x premium over the current 1.1x. This change would mean about a 10% increase in WMB’s stock price.

Wells Fargo analysts further explained that The Williams Companies, Inc. (NYSE:WMB) is likely to keep growing at a strong rate even after three years. If this is true, the 1.5x premium could actually be a conservative estimate.

The Williams Companies, Inc. (NYSE:WMB) is an American energy company that specializes in natural gas processing and transportation. The company also has some petroleum and electricity generation assets.

While we acknowledge the potential of WMB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 11 Stocks That Will Bounce Back According To Analysts and 11 Best Stocks Under $15 to Buy According to Hedge Funds.

Disclosure: None.