Williams Companies (WMB) represents a compelling investment opportunity, offering visible growth from high-return projects and a funding plan that does not require new equity, RBC Capital Markets said in a note Monday.
"WMB will be among the biggest beneficiaries of growing power and natural gas demand," the note said, pointing to its core infrastructure footprint that is set to deliver high-return growth projects to meet customer demand.
Williams is expected to grow EBITDA at a 10% compound annual growth through 2030 thanks to its backlog of secured projects.
The report also pointed to its strong balance sheet that supports this growth while maintaining 3.5-4.0x debt/EBITDA without the need for common equity issuance.
RBC has an outperform rating and a $82 price target. The stock is also on the RBC Global Top 30 best ideas list.
Price: 72.36, Change: +0.36, Percent Change: +0.50
Comments