Targa Resources (NYSE:TRGP) Stock Gets Price Target Bump from Morgan Stanley

Key Points

• Morgan Stanley raised its Targa Resources price target from $359 to $362 and maintained an “overweight” rating, implying 28% upside from the prior close.
• Analyst sentiment is broadly positive: two analysts rate the stock “Strong Buy” and 22 rate it “Buy”; the consensus price target is $326.37.
• Targa reported quarterly EPS of $3.04, beating the $2.74 estimate, and revenue of $5.60 billion versus expectations of $4.77 billion.

Targa Resources (NYSE:TRGP - Get Free Report) had its target price upped by equities researchers at Morgan Stanley from $359.00 to $362.00 in a report issued on Tuesday, Benzinga reports. The firm currently has an "overweight" rating on the pipeline company's stock. Morgan Stanley's price objective indicates a potential upside of 28.00% from the company's previous close.

Several other brokerages have also recently issued reports on TRGP. Wolfe Research set a $335.00 target price on shares of Targa Resources in a report on Friday, August 7th. TD Cowen raised shares of Targa Resources from a "hold" rating to a "buy" rating and increased their price target for the company from $275.00 to $350.00 in a research report on Friday, September 18th. Weiss Ratings raised shares of Targa Resources from a "buy (b+)" rating to a "buy (a-)" rating in a report on Thursday, October 29th. Citigroup boosted their price objective on shares of Targa Resources from $325.00 to $338.00 and gave the company a "buy" rating in a research report on Friday. Finally, Truist Financial restated a "buy" rating and issued a $345.00 price objective (up from $312.00) on shares of Targa Resources in a research report on Monday, September 21st. Two research analysts have rated the stock with a Strong Buy rating and twenty have given a Buy rating to the stock. Based on data from MarketBeat.com, Targa Resources has a consensus rating of "Buy" and a consensus price target of $326.37.

Targa Resources Trading Up 3.4%

Shares of NYSE TRGP traded up $9.19 during midday trading on Tuesday, reaching $282.82. The company had a trading volume of 396,850 shares, compared to its average volume of 1,305,159. The stock has a market cap of $60.65 billion, a PE ratio of 25.03, a price-to-earnings-growth ratio of 1.17 and a beta of 0.76. Targa Resources has a one year low of $166.18 and a one year high of $316.60. The firm's fifty day moving average price is $289.01 and its 200-day moving average price is $261.76. The company has a quick ratio of 0.68, a current ratio of 0.77 and a debt-to-equity ratio of 5.01.

Targa Resources (NYSE:TRGP - Get Free Report) last announced its quarterly earnings results on Thursday, November 5th. The pipeline company reported $3.04 EPS for the quarter, topping analysts' consensus estimates of $2.74 by $0.30. Targa Resources had a return on equity of 69.26% and a net margin of 13.55%. The business had revenue of $5.60 billion for the quarter, compared to analysts' expectations of $4.77 billion. On average, equities research analysts anticipate that Targa Resources will post 11.51 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Paul W. Chung sold 1,816 shares of the company's stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $296.11, for a total value of $537,735.76. Following the transaction, the director owned 44,000 shares in the company, valued at approximately $13,028,840. This represents a 3.96% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Waters S. Iv Davis sold 2,400 shares of the company's stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $299.67, for a total value of $719,208.00. Following the completion of the transaction, the director directly owned 1,529 shares in the company, valued at $458,195.43. This trade represents a 61.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 7,216 shares of company stock valued at $2,127,634 over the last ninety days. Company insiders own 1.37% of the company's stock.

Hedge Funds Weigh In On Targa Resources

A number of hedge funds have recently bought and sold shares of the business. BlackRock Inc. grew its stake in shares of Targa Resources by 1.4% in the second quarter. BlackRock Inc. now owns 20,832,687 shares of the pipeline company's stock worth $5,586,077,000 after acquiring an additional 291,114 shares during the period. State Street Corp lifted its position in Targa Resources by 4.6% during the second quarter. State Street Corp now owns 14,226,166 shares of the pipeline company's stock valued at $3,814,604,000 after purchasing an additional 626,885 shares during the period. Aberdeen Group plc boosted its holdings in Targa Resources by 3,159.2% in the third quarter. Aberdeen Group plc now owns 4,254,731 shares of the pipeline company's stock worth $1,150,096,000 after purchasing an additional 4,124,184 shares during the last quarter. Deutsche Bank AG boosted its holdings in Targa Resources by 21.7% in the second quarter. Deutsche Bank AG now owns 3,025,248 shares of the pipeline company's stock worth $811,190,000 after purchasing an additional 539,582 shares during the last quarter. Finally, Bank of America Corp DE boosted its holdings in Targa Resources by 28.0% in the first quarter. Bank of America Corp DE now owns 3,151,993 shares of the pipeline company's stock worth $790,299,000 after purchasing an additional 688,598 shares during the last quarter. Hedge funds and other institutional investors own 92.13% of the company's stock.

About Targa Resources

Targa Resources Corp. is a midstream energy company that gathers, processes, transports and stores natural gas and natural gas liquids (NGLs), and provides services for crude oil. Its infrastructure connects oil and gas producers with pipelines, processing facilities, fractionators, storage sites and domestic and international markets. The company's services include natural gas gathering, compression and processing; NGL transportation and fractionation; and crude oil gathering and terminaling. Targa also operates facilities that support the export of NGLs and liquefied petroleum gas products.

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