Zacks Investment Research downgraded shares of Williams Companies, Inc. (WMB) from NEUTRAL to UNDERPERFORM on October 24, 2014, with a target price of $48.00.
We are downgrading our investment thesis on Williams Companies to Underperform from Neutral. Our concern stems from the company's extensive exposure to debt as reflected in its debt-to-capitalization ratio of 67.4%. Moreover, Williams is highly exposed to volatile natural gas prices, as the company's midstream assets are involved in the gathering, processing and transportation of the commodity. This translates into an uncertain near- to medium-term outlook on the company. Considering these headwinds, we expect Williams to underperform the industry, giving investors little reason to hold the stock.
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