Morgan Stanley upgraded Williams Companies (WMB ) to equal-weight from underweight.
Analyst Scott Soler says liquidity risk is lower. He believes investors can now more easily value the company's earnings power (normalized EPS), which he estimates to be 40 cents to 50 cents. He says recent talks with management, coupled with recent management decisions, gives him growing confidence that they are committed to living within their means.
Soler sees EPS of 25 cents in 2003 and 30 cents in 2004.