Analyst Jason Gabelman from TD Cowen maintained a Hold rating on Targa Resources and keeping the price target at $192.00.
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Jason Gabelman has given his Hold rating due to a combination of factors surrounding Targa Resources’ current and future performance. The company has maintained its full-year EBITDA guidance, distinguishing itself from peers who have had to make cuts. This stability is supported by strong gas volume trends in the Permian Basin, which have shown significant growth in recent months and are expected to continue providing momentum into 2026.
Despite the company’s solid performance and positive volume commentary, the stock is trading at a valuation that reflects a significant amount of anticipated growth, which tempers the potential for immediate upside. While Targa Resources has reiterated its FY25 adjusted EBITDA guidance, the market has already priced in much of the expected growth. Additionally, the company’s increased capital expenditure on new and accelerated projects indicates a focus on future growth, but this also suggests that the current valuation may already account for these developments.