2/9/2010- Morgan Stanley analysts are now buyers of Williams Companies (NYSE:WMB) after a severe stock mispricing that followed a restructuring announcement.

Analysts Stephen Maresca, Abdiel Santiago, Robert Kad, and Spencer McIntosh said, "We base our call primarily on our view that: 1) its E&P business is not getting full credit for its low cost Piceance exposure; 2) our bullish outlook for nat gas infrastructure demand and strong NGL pricing is positive for WPZ (80% owned by WMB post close); and 3) the stock reflects a deeply discounted valuation."

Morgan Stanley maintains an "overweight" rating on the stock with a $30 price target. The bank sees fiscal 2009 EPS of 96 cents, vs. the consensus estimates of $1 per share, and fiscal 2010 EPS of $1.49, vs. the consensus estimates of $1.41.

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