2023-03-28 11:56:26 ET
Williams ( NYSE: WMB ) ekes out a gain in Tuesday's trading despite receiving a downgrade to Hold from Buy with a $31 price target, cut from $40, at Truist Securities, which sees 2023-24 as "somewhat setup years" at the pipeline company as it expands.
Truist analyst Neal Dingmann said he continues to believe Williams' ( WMB ) "leading natural gas strategy will pay future 'dividends' though we forecast the incremental unitholder payout for the next 5-7 quarters to be relatively moderate."
Williams' ( WMB ) recent acquisitions will help growth, but continued pressure in segments such as West and Upstream likely will offset much of the upside, Dingmann said.
The analyst also noted Transco growth opportunities with eight projects in execution, two announced this year and six offshore expansion projects underway, which likely will cause EBITDA to double by 2025 from 2021.
Williams ( WMB ) stock offers excellent value, and the company boasts a strong balance sheet, high dividend coverage and yield, Gen Alpha writes in an analysis posted recently on Seeking Alpha .
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Williams downgraded at Truist with 2023-24 seen as 'setup years'