Erste Group Bank Predicts Targa Resources FY2026 Earnings

Key Points

• Erste Group Bank raised its FY2026 EPS estimate for Targa Resources to $10.94 from $10.80 and maintained a “Buy” rating, above the $10.77 analyst consensus.
• Targa’s latest quarterly results fell short of expectations, with EPS of $2.21 versus $2.48 expected and revenue of $4.09 billion versus $4.68 billion estimated.
• The stock opened at $262.01 after declining 2.1%; analysts remain broadly bullish, with 17 Buy ratings, two Holds and an average price target of $288. Targa also declared a quarterly dividend of $1.25, equivalent to a 1.9% annual yield.

Targa Resources, Inc. (NYSE:TRGP - Free Report) - Analysts at Erste Group Bank increased their FY2026 earnings per share estimates for shares of Targa Resources in a report released on Monday, July 27th. Erste Group Bank analyst H. Engel now anticipates that the pipeline company will earn $10.94 per share for the year, up from their previous estimate of $10.80. Erste Group Bank currently has a "Buy" rating on the stock. The consensus estimate for Targa Resources' current full-year earnings is $10.77 per share.

Targa Resources (NYSE:TRGP - Get Free Report) last issued its earnings results on Thursday, May 7th. The pipeline company reported $2.21 earnings per share for the quarter, missing analysts' consensus estimates of $2.48 by ($0.27). Targa Resources had a return on equity of 71.00% and a net margin of 12.87%.The business had revenue of $4.09 billion for the quarter, compared to analyst estimates of $4.68 billion.

TRGP has been the subject of a number of other research reports. Scotiabank boosted their price objective on Targa Resources from $249.00 to $257.00 and gave the company an "outperform" rating in a research report on Tuesday, May 12th. Mizuho upped their target price on Targa Resources from $260.00 to $300.00 and gave the stock an "outperform" rating in a research report on Wednesday, May 27th. Seaport Research Partners reiterated a "neutral" rating on shares of Targa Resources in a research report on Monday, May 4th. Citigroup restated a "buy" rating on shares of Targa Resources in a report on Wednesday, May 27th. Finally, Morgan Stanley reaffirmed an "overweight" rating and set a $333.00 target price on shares of Targa Resources in a report on Tuesday, July 21st. Seventeen investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Targa Resources has an average rating of "Moderate Buy" and an average price target of $288.00.

Targa Resources Trading Down 2.1%

NYSE TRGP opened at $262.01 on Wednesday. The company has a debt-to-equity ratio of 5.64, a quick ratio of 0.62 and a current ratio of 0.72. Targa Resources has a one year low of $144.14 and a one year high of $291.04. The company has a 50-day simple moving average of $269.42 and a 200-day simple moving average of $243.64. The firm has a market capitalization of $56.24 billion, a PE ratio of 26.49, a price-to-earnings-growth ratio of 1.37 and a beta of 0.71.

Targa Resources Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 14th. Investors of record on Friday, July 31st will be paid a $1.25 dividend. The ex-dividend date of this dividend is Friday, July 31st. This represents a $5.00 dividend on an annualized basis and a yield of 1.9%. Targa Resources's dividend payout ratio (DPR) is currently 50.56%.

Insider Transactions at Targa Resources

In other Targa Resources news, Director Charles R. Crisp sold 10,602 shares of the company's stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $255.96, for a total transaction of $2,713,687.92. Following the completion of the sale, the director directly owned 66,492 shares of the company's stock, valued at approximately $17,019,292.32. This represents a 13.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 1.37% of the company's stock.

Hedge Funds Weigh In On Targa Resources

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Hardy Reed LLC boosted its position in shares of Targa Resources by 1.0% in the first quarter. Hardy Reed LLC now owns 4,321 shares of the pipeline company's stock worth $1,083,000 after buying an additional 41 shares during the period. Versant Capital Management Inc boosted its position in Targa Resources by 4.1% during the 2nd quarter. Versant Capital Management Inc now owns 1,146 shares of the pipeline company's stock worth $307,000 after acquiring an additional 45 shares during the period. Hantz Financial Services Inc. boosted its position in Targa Resources by 10.5% during the 4th quarter. Hantz Financial Services Inc. now owns 526 shares of the pipeline company's stock worth $97,000 after acquiring an additional 50 shares during the period. Steward Partners Investment Advisory LLC grew its stake in Targa Resources by 0.7% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 7,455 shares of the pipeline company's stock valued at $1,376,000 after acquiring an additional 51 shares in the last quarter. Finally, First Horizon Corp grew its stake in Targa Resources by 20.1% during the 4th quarter. First Horizon Corp now owns 340 shares of the pipeline company's stock valued at $63,000 after acquiring an additional 57 shares in the last quarter. Institutional investors and hedge funds own 92.13% of the company's stock.

About Targa Resources

Targa Resources Corporation NYSE: TRGP is a U.S.-focused midstream energy company that provides gathering, processing, transportation, storage and marketing services for natural gas, natural gas liquids (NGLs), and condensate. Its operations span the midstream value chain, including gas gathering systems that collect production from wells, processing plants that separate and recover NGLs and other hydrocarbons, fractionation and purification facilities that prepare NGLs for market, and pipeline and terminal assets that move and store products for producers, refiners and other customers.

The company operates a network of pipelines, processing plants, fractionators and storage facilities that serve producers and consumers across major U.S.

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