In a report released yesterday, Michael Blum from Wells Fargo maintained a Buy rating on Targa Resources (TRGP – Research Report), with a price target of $204.00.
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Michael Blum has given his Buy rating due to a combination of factors including Targa Resources’ strong financial performance and promising future outlook. The company’s Q4 adjusted EBITDA was in line with market expectations, slightly surpassing Blum’s own projections, primarily due to robust contributions from Logistics & Transportation. Despite a shortfall in free cash flow per share, higher capital expenditures are anticipated to drive growth.
Moreover, Targa Resources has provided a 2025 EBITDA guidance that exceeds consensus estimates, alongside an elevated growth capex forecast, signaling confidence in its ongoing projects and future expansion. The announcement of three major growth projects further underscores the company’s commitment to expansion, while the repurchase of preferred equity is expected to optimize its capital structure. These strategic moves highlight Targa Resources’ potential for long-term growth, justifying Blum’s optimistic Buy rating.
Blum covers the Energy sector, focusing on stocks such as Kinder Morgan, Cheniere Energy Partners, and Energy Transfer. According to TipRanks, Blum has an average return of 10.5% and a 64.00% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $204.00 price target.