Ameet Thakkar, an analyst from BMO Capital, has initiated a new Buy rating on Targa Resources (TRGP).
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Ameet Thakkar has given his Buy rating due to a combination of factors that highlight Targa Resources’ potential for growth and value. The company is positioned to thrive even in a challenging Permian rig environment, with expectations for its volumes to surpass the basin average. This growth potential is further supported by TRGP’s current trading valuation, which presents a significant discount compared to the S&P 500 and its C-Corp peers, making it an attractive investment opportunity.
Additionally, Targa Resources’ robust asset portfolio, particularly its extensive midstream infrastructure in the Delaware and Midland basins, provides a competitive edge. The company’s ability to manage the entire NGL supply chain from production to export without third-party reliance enhances its margin capture opportunities. Furthermore, TRGP’s capital return strategy, aiming to return a substantial portion of cash flow to shareholders, adds a layer of downside protection to its stock price. These factors collectively underpin Thakkar’s positive outlook and Buy rating for TRGP.
According to TipRanks, Thakkar is an analyst with an average return of -4.7% and a 47.62% success rate. Thakkar covers the Technology sector, focusing on stocks such as Enphase Energy, First Solar, and SolarEdge Technologies.
In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a $200.00 price target.