Jefferies Raises Its Price Target on The Williams Companies, Inc. (WMB) to $81 and Maintains a Buy Rating

Why It Matters

The upgraded targets highlight growing confidence in Williams' expanding midstream and power‑generation assets, suggesting stronger cash flow and earnings growth. This may boost the stock’s upside and attract additional capital to the sector.

Key Takeaways

• Jefferies lifts WMB target to $81, maintains Buy
• UBS raises target to $89, cites $7.3B backlog
• Williams posted $7.75B EBITDA, 9% five‑year CAGR
• 2026 EBITDA guidance $8.2B, driven by Power Innovation
• Power Innovation to generate $1.4B EBITDA by 2029

Pulse Analysis

The recent analyst upgrades for The Williams Companies (NYSE:WMB) reflect a broader shift in market sentiment toward midstream energy firms that are diversifying into power generation. Jefferies lifted its price target to $81, up from $78, while maintaining a Buy rating after a robust analyst day, and UBS followed suit with a $89 target, emphasizing a $7.3 billion backlog of power‑generation projects. Both firms highlighted the company’s ability to sustain double‑digit EBITDA growth through 2030, positioning Williams as a beneficiary of rising natural‑gas demand for electricity and data‑center power.

Williams delivered a record $7.75 billion adjusted EBITDA for 2025, representing a 9% compound annual growth rate over the past five years and underpinning a five‑year EPS CAGR of 14%. Although fourth‑quarter adjusted earnings of 55 c fell short of the 57 c consensus, the firm’s guidance for 2026 projects $8.2 billion EBITDA, driven by newly commissioned pipeline capacity and the first Power Innovation project slated for late 2026. The Power Innovation segment, backed by a $7.3 billion backlog, is expected to generate roughly $1.4 billion of annual EBITDA by 2029, adding a renewable‑focused revenue stream to the traditional midstream model.

The upward revisions by Jefferies and UBS signal confidence that Williams can translate its infrastructure investments into durable cash flow, a key metric for institutional investors seeking stable returns in a volatile energy market. With a projected 12%‑13% EBITDA CAGR through FY30 and a potential 10%‑plus trajectory beyond that, the company is well‑positioned to capture growth from both legacy gas transportation and emerging power‑generation assets. Investors may view the revised price targets as a catalyst for share appreciation, while the expanded backlog underscores the firm’s competitive edge in a sector increasingly driven by decarbonization and data‑center power needs.