Targa Resources initiated with an Outperform at BMO Capital

BMO Capital analyst Ameet Thakkar initiated coverage of Targa Resources (TRGP) with an Outperform rating and $185 price target The firm expanded its Energy Transition and Infrastructure coverage to include a cross-section of high-quality, midstream companies that it believes are best-positioned to meet an increasing need for expansion natural gas, liquefied natural gas, and natural gas liquid infrastructure. The firm noted that the positive slant to its rating in part reflects its view that these companies’ current valuations don’t adequately reflect positive global power demand tailwinds that will support infrastructure investment in natural gas, but also a concerted decision to pick the highest quality names. In the case of Targa, the firm said it is being opportunistic in the face of falling oil rig counts.