Williams Partners LP (WPZ) Share Price Expected To Rise

Analysts from Morgan Stanley believe that the share price of Williams Partners LP (NYSE: WPZ) will rise in absolute terms over the next 45 days. This is because of an announced restructuring.

Williams Companies, Inc (NYSE: WMB) announced a transformative transaction that will unlock value at its MLPs including Williams Partners LP. Williams Companies, Inc is ‘dropping down’ most of its pipeline and midstream assets and WMZ LP/GP interests into a larger WPZ. The transaction will increase WPZ’s share of fee-based business, increase its 1Q distribution by 3.5% and result in an investment grade rating. While shares have responded positively, analysts believe there is room for further upside as value from drop down assets are better understood and valued by investors. Analyst estimate that there is about an 80%+ or "almost certain" probability for the scenario.