Key Stats for WMB Stock
- Past-Week Performance: -6%
- 52-Week Range: $56 to $80
- Valuation Model Target Price: $89
- Implied Upside: 22%
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What Happened?
Williams Companies stock fell about 6% this week, finishing near $73 per share after recently touching a 52-week high of about $80. The pullback came after investors had been paying up for one of the cleaner natural gas infrastructure stories in the market, with WMB often compared with Kinder Morgan, ONEOK, Enterprise Products Partners, and Energy Transfer as investors look for pipeline operators tied to LNG growth, rising power demand, and stable fee-based cash flows.
The stock moved lower because investors appeared to take profits after WMB’s rally pushed shares near the top of its 52-week range, leaving less room for near-term upside. Recent ownership updates added to the mixed tone, with Northwestern Mutual Wealth Management cutting its stake by 43%, GS Investments reducing its position by 22%, and insiders selling about 90,900 shares worth roughly $6.9 million over the last 90 days. Still, the selling was not one-sided, as Allstate more than doubled its stake, Legal & General increased its position by 2%, and institutional ownership remained high, making the decline look more like valuation-driven profit-taking than a break in the company’s fundamentals.
Williams’ recent Q1 earnings call gave investors a clearer look at the business behind the stock, with adjusted EBITDA rising 13% to a record $2.25 billion and adjusted EPS growing 22%.
CEO Chad Zamarin said Williams “commercialized 3 new major projects and upsized a fourth,” including Neo, a 682-megawatt power project built to serve rising data center electricity demand, Atlas, a pipeline agreement that can supply up to 164 million cubic feet per day to a data center customer, Silver Spur, a Northwest pipeline expansion adding 275 million cubic feet per day, and the Transco Power Express upsize to 750 million cubic feet per day.
CFO John Porter also said the company’s contracted business now supports around a 9% EBITDA and EPS CAGR from 2025 through 2030, up from 8% at Analyst Day, giving investors more visibility into how power demand, pipeline expansions, and natural gas infrastructure projects could drive results this year and beyond.
Analyst actions kept the longer-term story intact, even though they did not stop the weekly pullback. Morgan Stanley recently raised its WMB price target to $98 from $90, UBS lifted its target to $91 from $89, TD Cowen raised its target to $87 from $81, Citigroup moved its target to $83 from $81, Scotiabank lifted its target to $86 from $85, Mizuho raised its target to $82 from $73, and Jefferies raised its target to $83 from $81.
The bigger takeaway is that WMB’s decline this week looked driven more by valuation, profit-taking, and mixed ownership updates than weaker fundamentals, while record EBITDA, new data center and pipeline projects, and higher analyst targets continue to support the 2026 growth setup.
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Is WMB Undervalued?
Under valuation assumptions, the stock is modeled using:
- Revenue Growth: 9%
- Operating Margins: 40%
- Exit P/E Multiple: 25x
Williams’ valuation case depends on whether the company can turn rising natural gas demand, data center power needs, LNG growth, and new pipeline projects into steady fee-based cash flow growth.
Revenue is expected to rise from about $12 billion in 2026 to about $20 billion by 2030, which points to a stronger growth profile than many investors usually expect from a large midstream company.
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The key drivers over the next 12 months are Transco expansion progress, power-related project execution, dividend coverage, debt control, and continued demand from utilities, LNG exporters, and industrial customers.
Based on these inputs, the model estimates a target price of about $89, implying about 22% total upside, suggesting WMB appears undervalued at current prices.
At current levels, Williams Companies looks modestly undervalued, with future performance likely driven by contracted project growth, stronger natural gas demand, and steady capital returns rather than a major commodity-price bet.
How Much Upside Does WMB Stock Have From Here?
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All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
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