Analyst Jeremy Tonet from J.P. Morgan maintained a Buy rating on Targa Resources and increased the price target to $209.00 from $189.00.
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Jeremy Tonet has given his Buy rating due to a combination of factors that highlight Targa Resources’ strong positioning and growth potential. The company’s robust performance in the Permian Basin, characterized by a significant rebound in volumes and a favorable contract mix, underscores its ability to capitalize on market opportunities. This is further supported by Targa’s strategic positioning in the Permian, which is expected to continue outpacing basin-level growth, offering a competitive edge over its peers.
Additionally, Targa Resources’ management has demonstrated confidence in the company’s future outlook, particularly with the anticipated ramp-up in Permian volumes and the potential for increased LPG export demand from emerging Asian markets. The company’s financial metrics, such as resilient EBITDA growth and advantageous operating leverage, are seen as underappreciated by the market, presenting an attractive opportunity for investors. The strategic focus on buybacks and the potential elimination of cash taxes by 2027 further enhance the investment thesis, making Targa Resources a compelling buy for long-term investors.
In another report released today, Barclays also maintained a Buy rating on the stock with a $195.00 price target.
TRGP’s price has also changed moderately for the past six months – from $191.980 to $170.690, which is a -11.09% drop .