Wells Fargo has increased its target price for Williams Companies (NYSE: WMB) to $80.00 from $71.00 and maintained an Overweight recommendation on the shares. The upgrade follows a recent Analyst Day presentation in which Williams laid out growth expectations that the brokerage found convincing.
At the time of the note, Williams was trading at $68.84, close to its 52-week high of $71.58 and carrying a market capitalization of $84.07 billion. InvestingPro data referenced by analysts shows a price-to-earnings ratio of 34.99 for the stock, a level the platform flags as a high earnings multiple. Over the last 12 months the share price and distributions have delivered a 28.93% total return.
Analyst Day and growth assumptions
The company’s Analyst Day presentation included a five-year EBITDA compound annual growth rate (CAGR) forecast in excess of 10% for the 2025-2030 period. Management said roughly 8% of that projected growth is effectively "locked in" through projects that have reached final investment decision (FID) as well as modest expansion in gathering and processing volumes. That outlook builds on Williams’ current EBITDA base of $6.29 billion and recent revenue growth of 11.73% over the last twelve months.
Wells Fargo extended the time horizon on its model assumptions, arguing that the combination of transmission and power project opportunities - together with the company’s expected in-service timing - could support a longer period of elevated EBITDA growth. Specifically, the bank presented a scenario in which Williams attains a 12% EBITDA CAGR over seven years rather than limiting the view to the five-year window put forward by the company.
Project backlog and execution
Williams disclosed that it reached FID on a new power project named Socrates The Younger and is advancing expansions at several existing sites. The company also reported an increase in its power backlog to 6 gigawatts from an implied backlog of roughly 5 gigawatts previously, and extended the duration of two existing power contracts from 10 years to 12.5 years.
On the construction front, Williams is executing against approximately $12 billion of contracted projects currently under construction. Management sees a potential broader backlog of $37 billion, which the company breaks down into $15.5 billion of pipeline projects and the 6 gigawatts of power generation capacity noted above. Wells Fargo additionally cites dealer and equipment order activity - roughly 10 gigawatts on order with equipment manufacturers - to estimate an extra "shadow-shadow backlog" of about $14 billion.
Capital returns and valuation context
Wells Fargo highlighted Williams’ shareholder-return profile, noting a current dividend yield of 3.05% and dividend growth of 10.53% over the prior twelve months. Separately, Williams announced a 5% increase in its quarterly dividend to $0.525 per share from $0.50, which annualizes to $2.10. That dividend is scheduled to be paid on March 30, 2026 to shareholders of record as of March 13, 2026.
Investment research tools referenced in the note indicate that Williams is covered across platforms that provide additional metrics and analyst output. InvestingPro identifies more than 10 additional ProTips related to Williams’ financial health and valuation, and lists the company among the more than 1,400 U.S. equities included in its Pro Research Reports offering.
Other broker activity and project developments
Beyond Wells Fargo’s move, a number of other firms have recently updated views on Williams. Mizuho raised its price target to $73 and maintained an Outperform rating. UBS reiterated a Buy rating and pointed to progress on the Northeast Supply Enhancement project, including the securing of water permits and a target to have the project operational in late 2027. Goldman Sachs adjusted its own price target to $64 while forecasting that the company’s fourth-quarter 2025 EBITDA will slightly exceed consensus.
These multiple adjustments reflect an active period of coverage by sell-side analysts as Williams progresses on its mix of pipeline, transmission and power projects while iterating its expected in-service timing.
Implications for investors
Wells Fargo’s note places emphasis on both the portion of growth that is contractually secured through FIDs and the larger pool of opportunities that could convert into additional contracted work. The distinction between contracted projects under construction, potential backlog, and the additional equipment orders that underlie the bank’s "shadow-shadow backlog" estimate is central to the bank’s rationale for extending the EBITDA growth horizon and lifting the stock’s target.
Investors evaluating Williams should weigh the company’s near-term execution against the pipeline of potential projects and the impact of converting portions of that pipeline into contracted, revenue-generating assets.