Analysts are tripping over themselves to upgrade the stock of Targa Resources (TRGP) after the energy giant raised its quarterly dividend payment by 733% to $1 per share.
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Going forward, Targa’s dividend will total $4 a share each year, giving it a yield of 2.33% based on the current share price. Based in Houston, Texas, Targa Resources is one of the largest infrastructure companies producing natural gas and natural gas liquids in the U.S., primarily in the Gulf Coast region.
The company just declared a dramatic dividend increase, lifting its quarterly distribution to $1 a share from $0.12 previously. Management said that they raised the dividend a massive 733% as they commit to returning value to shareholders.
Price Targets Raised
The dividend increase comes ahead of Targa Resources’ second-quarter financial results that are scheduled to be released on August 7. Wall Street analysts were quick to boost their price targets on Targa Resources stock following the big dividend increase.
Barclays Bank (BCS) lifted its price target on TRGP stock to $195 and reiterated a Buy-equivalent overweight rating on the shares. At the same time, analysts at JPMorgan Chase (JPM) boosted their price target on Targa Resources’ stock to $209 and also reiterated an overweight rating. JPMorgan said that Targa Resources continues to exhibit strong growth potential in the Permian Basin region of Texas.
TRGP stock has gained 28% in the last 12 months and is up 801% over the past five years.
Is TRGP Stock a Buy?
The stock of Targa Resources has a consensus Strong Buy rating among 15 Wall Street analysts. That rating is based on 13 Buy and two Hold recommendations issued in the last three months. The average TRGP price target of $201.53 implies 17.63% upside from current levels.
