UPDATE: Jefferies Downgrades Williams Companies on Valuation
In a report published Thursday, Jefferies analyst Christopher Sighinolfi downgraded the rating on Williams Companies (NYSE: WMB) from Buy to Hold, but reiterated the $44.00 price target.
In the report, Jefferies noted, “With two large investors having recently achieved a mutual agreement with WMB under which each will have a representative promptly appointed to the Company's Board, we believe something transformative may be in the works. We recognize that WMB trades at a material discount to peers with similar rates of dividend growth, but believe it will not realize its full valuation potential without first restoring the health of WPZ cash flows & DCF coverage. To that end, we have contemplated various scenarios which aim to achieve this goal; however, as each is predicated on numerous sequential 'if' statements, we have not included any in our formal valuation analysis.”
Williams Companies closed on Wednesday at $41.64.
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