Williams initiated with a Neutral at CIBC

CIBC initiated coverage of Williams Companies with a Neutral rating and $36 price target. Williams shares provide “excellent exposure” to North American natural gas fundamentals, but its long-term growth potential is “roughly offset” by short-term headwinds associated with lower natural gas prices, creating a relatively flat adjusted EBITDA profile through 2024, the analyst tells investors in a research note. When combined with a below-average dividend yield, investors can afford to wait for a better entry point before adding to their weighting or initiating a position, says CIBC.