Targa Resources, Inc. (NYSE:TRGP) Receives Average Rating of "Buy" from Brokerages

Key Points

• Analysts remain bullish on Targa Resources: Nineteen brokerages give TRGP an average “Buy” rating, with 17 buys, one hold and one strong buy. The average 12-month price target is approximately $297.18, while recent targets from Wolfe Research and Raymond James reached $335 and Jefferies raised its target to $345.
• Long-term growth visibility improved through ExxonMobil contracts: Targa secured 20-year, fee-based agreements supporting Permian processing and takeaway infrastructure through 2046. However, higher planned capital spending could pressure near-term free cash flow and increase execution risk.
• Strong results and institutional ownership support the stock, but valuation is elevated: Targa beat quarterly EPS estimates by reporting $3.54 versus $2.83 expected, and institutional investors own 92.13% of shares. TRGP is near its 52-week high after an approximately 85% rally, while its $1.25 quarterly dividend equates to a 1.7% yield.

Shares of Targa Resources, Inc. (NYSE:TRGP - Get Free Report) have earned an average recommendation of "Buy" from the nineteen brokerages that are covering the company, MarketBeat reports. One research analyst has rated the stock with a hold recommendation, seventeen have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month price objective among analysts that have issued a report on the stock in the last year is $297.1765.

TRGP has been the subject of several recent research reports. Wolfe Research set a $335.00 price target on Targa Resources in a research note on Friday, August 7th. Raymond James Financial set a $335.00 price objective on Targa Resources in a research note on Friday, August 7th. US Capital Advisors cut Targa Resources from a "strong-buy" rating to a "moderate buy" rating in a report on Friday, May 29th. Weiss Ratings reiterated a "buy (b)" rating on shares of Targa Resources in a research report on Thursday, July 2nd. Finally, Jefferies Financial Group increased their target price on Targa Resources from $324.00 to $345.00 and gave the stock a "buy" rating in a report on Tuesday, August 18th.

Targa Resources News Summary

Here are the key news stories impacting Targa Resources this week:

• Positive Sentiment: Long-term ExxonMobil contracts strengthen growth visibility. Targa secured 20-year, fee-based agreements with ExxonMobil covering the Permian Delaware and Midland basins. The arrangements support new processing and takeaway infrastructure through 2046, potentially improving cash-flow visibility and extending Targa’s Permian growth runway. Targa Resources Secures 20-Year Deal With ExxonMobil
• Positive Sentiment: Jefferies initiated or reiterated a Buy rating. The endorsement provides additional analyst support for TRGP’s long-term growth and infrastructure outlook. Targa Resources Gets a Buy from Jefferies
• Neutral Sentiment: Higher capital spending raises execution risk. The ExxonMobil-related infrastructure buildout could create meaningful future growth, but increased 2026 spending may pressure near-term free cash flow and heighten construction and execution demands. How Targa's ExxonMobil Deal Could Extend Its Permian Growth Runway
• Negative Sentiment: US Capital Advisors reduced multiple EPS forecasts. The firm cut estimates for late 2026, all quarters of 2027, FY2027 EPS from $11.75 to $11.05, and FY2028 EPS from $13.42 to $12.73. Although it maintained a “Moderate Buy” rating, the revisions suggest expectations for slower earnings growth.
• Negative Sentiment: Premium valuation may limit upside. TRGP is trading close to its 52-week high following an approximately 85% rally, while heavy spending and potentially moderating marketing gains have raised questions about whether the current valuation fully reflects future growth. Targa Resources' Stock Near 52-Week High

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Hardy Reed LLC grew its stake in shares of Targa Resources by 1.0% during the first quarter. Hardy Reed LLC now owns 4,321 shares of the pipeline company's stock valued at $1,083,000 after buying an additional 41 shares during the last quarter. Versant Capital Management Inc lifted its stake in shares of Targa Resources by 4.1% in the 2nd quarter. Versant Capital Management Inc now owns 1,146 shares of the pipeline company's stock valued at $307,000 after acquiring an additional 45 shares during the last quarter. Premier Path Wealth Partners LLC lifted its stake in shares of Targa Resources by 2.3% in the 2nd quarter. Premier Path Wealth Partners LLC now owns 2,003 shares of the pipeline company's stock valued at $537,000 after acquiring an additional 45 shares during the last quarter. Hantz Financial Services Inc. boosted its holdings in Targa Resources by 10.5% during the 4th quarter. Hantz Financial Services Inc. now owns 526 shares of the pipeline company's stock valued at $97,000 after acquiring an additional 50 shares during the period. Finally, River Wealth Advisors LLC boosted its holdings in Targa Resources by 0.3% during the 2nd quarter. River Wealth Advisors LLC now owns 19,457 shares of the pipeline company's stock valued at $5,217,000 after acquiring an additional 50 shares during the period. 92.13% of the stock is currently owned by institutional investors and hedge funds.

Targa Resources Stock Up 0.3%

TRGP opened at $300.01 on Monday. Targa Resources has a fifty-two week low of $144.14 and a fifty-two week high of $307.94. The company has a debt-to-equity ratio of 5.01, a quick ratio of 0.68 and a current ratio of 0.77. The company has a market capitalization of $64.33 billion, a P/E ratio of 28.68, a P/E/G ratio of 1.43 and a beta of 0.72. The stock has a fifty day moving average of $271.98 and a 200-day moving average of $254.49.

Targa Resources (NYSE:TRGP - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The pipeline company reported $3.54 EPS for the quarter, topping analysts' consensus estimates 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 net margin of 13.55% and a return on equity of 69.26%. On average, equities analysts expect that Targa Resources will post 11.13 EPS for the current year.

Targa Resources Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Friday, July 31st were given a $1.25 dividend. The ex-dividend date was Friday, July 31st. This represents a $5.00 annualized dividend and a dividend yield of 1.7%. Targa Resources's payout ratio is presently 47.80%.

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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