Williams:Argus Research Reiterates Buy, Raises PT to $66

Williams:Argus Research Reiterates Buy, Raises PT to $66

Argus Research has reiterated its Buy rating on Williams Companies, Inc. (WMB) and raised its price target to $66.00, following the company's strong second-quarter 2025 performance. The research firm highlighted impressive gross profit margins of 60.6% and robust revenue growth of 34.9% over the last twelve months [2].

Williams Companies, Inc. reported adjusted earnings per share of 46 cents for the second quarter, which missed the Zacks Consensus Estimate of 49 cents. The underperformance was primarily due to the weak performance of the Gas & NGL Marketing Services segment and a rise in total costs and expenses. However, the company's Transmission & Gulf of America, Northeast G&P, West, and Other segments delivered strong results [3].

The company's revenues of $2.8 billion missed the Zacks Consensus Estimate by $277 million, but they increased from the year-ago quarter's reported number of $2.3 billion. Adjusted EBITDA totaled $1.9 billion in the quarter under review, up 16% year over year. Cash flow from operations amounted to $1.5 billion, up 13% from the corresponding quarter of 2024 [3].

Argus Research noted that Williams Companies has demonstrated resilience in the face of macroeconomic challenges, including foreign exchange rates and tariffs. The company's strong performance across multiple segments, particularly in the Transmission & Gulf of America and Northeast G&P segments, underscores its operational strength and growth potential [3].

The research firm also highlighted Williams Companies' strategic initiatives, such as the expansion of its pipeline network and the acquisition of Saber Midstream, which are expected to support the company's long-term growth prospects. Additionally, the company's strong current ratio of 2.8 supports its expansion potential [2].

In conclusion, Argus Research's Buy rating and price target raise reflect the company's robust performance and growth prospects. Investors should closely monitor Williams Companies' progress as it navigates through the challenges posed by macroeconomic factors and continues to execute its strategic initiatives.

References:
[1] https://www.ainvest.com/news/union-pacific-downgraded-hold-argus-export-challenges-norfolk-southern-merger-2508/
[2] https://www.investing.com/news/analyst-ratings/on-holding-stock-price-target-reiterated-at-66-by-raymond-james-93CH-4187653
[3] https://www.theglobeandmail.com/investing/markets/stocks/HAL/pressreleases/33961690/williams-q2-earnings-and-revenues-miss-estimates-expenses-rise-yy/