NEW YORK (TheStreet) -- Williams Companies (WMB) - Get Report stock was downgraded by analysts at JPMorgan to "neutral" from "overweight" and their price target was reduced to $60 from $65.

On Thursday, shares of the oil pipeline operator are falling 1.17% to $57.05.

This action follows the $5.13 billion all-equity takeover offer from Energy Transfer Equity (ETE) , announced on Monday. Energy Transfer Equity is a portfolio company that owns energy assets.

Williams rejected Energy Transfer Equity's bid without disclosing which company was interested in buying it, Barron's said.

"With Williams apparently refusing to engage Energy Transfer Equity over an almost six month period, we see any deal as uncertain at this juncture," analysts noted.

Separately, TheStreet Ratings team rates WILLIAMS COS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate WILLIAMS COS INC (WMB) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Net operating cash flow has significantly increased by 50.00% to $669.00 million when compared to the same quarter last year. In addition, WILLIAMS COS INC has also vastly surpassed the industry average cash flow growth rate of -53.29%.
  • The gross profit margin for WILLIAMS COS INC is rather high; currently it is at 50.52%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.07% trails the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, WILLIAMS COS INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
  • Despite the weak revenue results, WMB has significantly outperformed against the industry average of 38.7%. Since the same quarter one year prior, revenues slightly dropped by 1.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • WILLIAMS COS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, WILLIAMS COS INC increased its bottom line by earning $2.82 versus $0.64 in the prior year. For the next year, the market is expecting a contraction of 66.3% in earnings ($0.95 versus $2.82).
  • You can view the full analysis from the report here: WMB Ratings Report