Williams Companies (WMB) Gains Analyst Confidence with Growth Outlook

The Williams Companies, Inc. (NYSE:WMB) is one of the best infrastructure stocks to buy right now. On February 11, Wells Fargo analyst Praneeth Satish raised the price target on The Williams Companies, Inc. (NYSE:WMB) to $80 from $71 and maintained an Overweight rating.

Satish commended Williams’ Analyst Day presentation, in which the company projected over 10% five-year EBITDA compound annual growth from 2025 to 2030. The company said roughly 8% is “locked in” through final investment decision projects alongside modest gathering and processing expansion.

Williams announced during the presentation that it won approval on “Socrates The Younger” power initiative and site extensions. This boosted the power backlog to 6 gigawatts from an implied 5 gigawatts and lengthened two contracts to 12.5 years from 10. The company also detailed that it carries $12 billion in active construction contracts and a $37 billion opportunity pipeline. It also holds roughly 10 gigawatts in equipment orders for an extra $14 billion shadow-shadow backlog. In this light, Wells Fargo forecasted a 12% EBITDA CAGR across seven years, which surpassed the Williams guide.

Independent of the analyst action, on February 6, Reuters revealed that Williams is exploring the acquisition of US natural gas production assets. The move aims to secure natural gas supplies for its one-stop energy services to hyperscalers and AI data center developers, Reuters said in an exclusive report.

If successful, this will position Williams as a single partner over multiple suppliers. The company spent the past year building AI energy leadership, adding power generation to its pipeline business amid data center power demands, Reuters reported.

The Williams Companies, Inc. (NYSE:WMB) is an energy infrastructure company. It owns and operates one of the largest natural gas pipeline systems in the United States. The company’s assets also include gathering, processing, and storage facilities.

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: 10 Best S&P 500 Stocks With Highest Upside Potential and 10 Best NYSE Stocks to Buy for the Long Term.

Disclosure: None. This article is originally published at Insider Monkey.