Erste Group Bank Comments on Targa Resources FY2027 Earnings

Key Points

• Erste Group Bank lowered its FY2027 EPS estimate for Targa Resources to $12.20 from $12.26, still above the $11.32 consensus forecast, while maintaining a “Buy” rating.
• Analyst sentiment remains strongly positive, with one “Strong Buy” and 18 “Buy” ratings; the consensus price target is $317.24.
• Targa Resources reported quarterly EPS of $3.54, beating estimates of $2.83, and pays a quarterly dividend of $1.25 per share, yielding approximately 1.8% annually.

Targa Resources, Inc. (NYSE:TRGP - Free Report) - Equities researchers at Erste Group Bank decreased their FY2027 earnings estimates for shares of Targa Resources in a research report issued to clients and investors on Friday, September 18th. Erste Group Bank analyst H. Engel now anticipates that the pipeline company will earn $12.20 per share for the year, down from their previous forecast of $12.26. Erste Group Bank has a "Buy" rating on the stock. The consensus estimate for Targa Resources' current full-year earnings is $11.32 per share.

A number of other brokerages have also recently weighed in on TRGP. Barclays lifted their price target on shares of Targa Resources from $282.00 to $284.00 and gave the stock an "overweight" rating in a research report on Friday, August 7th. Wolfe Research set a $335.00 target price on Targa Resources in a research report on Friday, August 7th. UBS Group reiterated a "buy" rating and issued a $318.00 price objective on shares of Targa Resources in a report on Thursday, July 9th. Mizuho increased their price objective on shares of Targa Resources from $300.00 to $320.00 and gave the stock an "outperform" rating in a research note on Friday, September 11th. Finally, Scotiabank boosted their price target on Targa Resources from $257.00 to $314.00 and gave the stock an "outperform" rating in a research report on Thursday, September 10th. One investment analyst has rated the stock with a Strong Buy rating and eighteen have assigned a Buy rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Buy" and a consensus target price of $317.24.

Targa Resources Stock Performance

Shares of NYSE:TRGP opened at $282.69 on Wednesday. The company has a current ratio of 0.77, a quick ratio of 0.68 and a debt-to-equity ratio of 5.01. Targa Resources has a 1-year low of $144.14 and a 1-year high of $307.94. The stock has a market capitalization of $60.62 billion, a P/E ratio of 27.03, a P/E/G ratio of 1.36 and a beta of 0.72. The business has a 50-day moving average price of $282.09 and a two-hundred day moving average price of $264.67.

Targa Resources (NYSE:TRGP - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The pipeline company reported $3.54 EPS for the quarter, beating the consensus estimate of $2.83 by $0.71. The business had revenue of $4.44 billion for the quarter, compared to analyst estimates of $4.90 billion. Targa Resources had a return on equity of 69.26% and a net margin of 13.55%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in TRGP. First Eagle Investment Management LLC boosted its holdings in Targa Resources by 381.0% in the 2nd quarter. First Eagle Investment Management LLC now owns 101 shares of the pipeline company's stock valued at $27,000 after purchasing an additional 80 shares during the period. Leonteq Securities AG purchased a new position in shares of Targa Resources during the 4th quarter valued at about $31,000. Jones Financial Companies Lllp bought a new stake in shares of Targa Resources in the 2nd quarter worth approximately $32,000. Compass Financial Management LLC bought a new stake in Targa Resources in the second quarter worth $33,000. Finally, CoreCap Advisors LLC grew its position in Targa Resources by 245.9% during the 2nd quarter. CoreCap Advisors LLC now owns 128 shares of the pipeline company's stock worth $34,000 after acquiring an additional 91 shares during the last quarter. 92.13% of the stock is owned by institutional investors.

Insider Activity

In related news, Director Charles Crisp sold 3,000 shares of the business's stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $290.23, for a total value of $870,690.00. Following the completion of the sale, the director directly owned 62,292 shares in the company, valued at approximately $18,079,007.16. The trade was a 4.59% 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 Paul Chung sold 1,816 shares of the stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $296.11, for a total value of $537,735.76. Following the sale, the director directly owned 44,000 shares in the company, valued at $13,028,840. This represents a 3.96% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 7,216 shares of company stock worth $2,127,634. Corporate insiders own 1.37% of the company's stock.

Targa Resources Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Friday, July 31st were issued a dividend of $1.25 per share. The ex-dividend date of this dividend was Friday, July 31st. This represents a $5.00 annualized dividend and a dividend yield of 1.8%. Targa Resources's dividend payout ratio (DPR) is currently 47.80%.

About Targa Resources

Targa Resources Corp. NYSE: TRGP is a midstream energy infrastructure company that gathers, processes, transports and fractionates natural gas and natural gas liquids (NGLs). Its operations connect producers with downstream markets and include natural gas gathering and processing, NGL fractionation, storage, transportation and marketing, as well as crude oil gathering and logistics.

The company operates an integrated network of pipelines, processing plants, fractionation facilities, storage assets and export infrastructure across the United States.

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