Wolfe Research Upgrades The Williams Companies (WMB) Stock

The Williams Companies, Inc. (NYSE:WMB) is one of the Top Energy and Utility Stocks Wall Street Analysts Are Talking About. On June 13, Wolfe Research upgraded the company’s stock from “Underperform” to “Peer perform.” The change in the rating is mainly backed by rising evidence of a growth inflection, which aids the premium valuation. The upgrade demonstrates The Williams Companies, Inc. (NYSE:WMB)’s thematically appealing position, together with financial flexibility to finance a growing opportunity set, added Wolfe Research.

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

As per the firm’s analysis, the company remains well-positioned to reap the opportunities available in the broader energy sector. The Williams Companies, Inc. (NYSE:WMB)’s strong pipeline network places it as a critical player in the movement of natural gas across North America. Because of a recent investment in Cogentrix Energy and the outperformance of its base business, The Williams Companies, Inc. (NYSE:WMB) raised its 2025 adjusted EBITDA guidance midpoint by $50 million to $7.7 billion.

Overall, the company’s track record of generating predictable, growing earnings in numerous economic cycles strengthens the value of the company as a stable, long-term investment possessing a strong dividend. The Williams Companies, Inc. (NYSE:WMB) projects its leverage ratio midpoint for 2025 to be 3.65x and has raised the dividend by 5.3% on an annualized basis to $2.00 in 2025 from $1.90 in 2024.

Carillon Tower Advisers, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“The Williams Companies, Inc. (NYSE:WMB) performed well because investors expect it to benefit from growing demand for natural gas over the next several years or even decades. Liquid natural gas exports, onshoring, and data center buildouts could place upward pressure on the company’s volumes across its midstream portfolio. We believe that the company’s share price continues to discount this future benefit due to a very challenging overall energy backdrop.”

While we acknowledge the potential of WMB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than WMB and that has 100x upside potential, check out our report about this cheapest AI stock.

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