Williams price target raised to $56 from $47 at RBC Capital

RBC Capital raised the firm’s price target on Williams to $56 from $47 and keeps an Outperform rating on the shares as part of a broader research note previewing Q3 results for U.S. Midstream names. The firm is updating its models to reflect shifts in commodity prices, hurricane impact, and dry gas production weakness, adding that it expects most companies to maintain 2024 outlooks, the analyst tells investors in a research note. For the company, RBC states that while the run in the shares and valuation may keep some investors on the sidelines, the company’s long-term growth potential from datacenter/AI driven power projects continues to attract investor interest as non-traditional midstream investors view Williams as a “derivative play” on datacenter/AI growth.