Integrated oil and natural gas producer Williams Companies, Inc.
) on Wednesday caught a big upgrade from analysts at Wells
The firm said it boosted its rating on WMB from "Market Perform"
to "Outperform" with a price target range of $37-40. That target
suggests up to a 28% upside to the stock's Tuesday closing price of
A Wells Fargo analyst commented, "WMB is well positioned to
continue delivering robust dividend growth (i.e. target of 20%
annually in 2013 and 2014) supported by 8-10% annual increases in
WPZ's distribution, a projected 31% CAGR in the IDRs, and an
estimated 31% CAGR in MC&O results. Management remains positive
long-term on natural gas fundamentals. The commodity's low cost and
price advantage against most other energy sources is spurring
investments in a multitude of industries including power
generation, steel, agriculture (e.g. fertilizer), and petrochemical
(e.g. energy consumption of new crackers and downstream
Williams Companies shares posted modest gains in premarket
The Bottom Line
Shares of Williams Companies (
) have a 3.84% dividend yield, based on last night's closing stock
price of $31.29. The stock has technical support in the $28-$30
price area. If the shares can firm up, we see overhead resistance
around the $32-$34 price levels.
Williams Companies, Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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