Targa Resources (NYSE:TRGP) Given New $245.00 Price Target at TD Cowen

Key Points

• TD Cowen raised its price target on Targa Resources to $245 from $236, while keeping a Hold rating. The new target still implies a slight downside from the stock’s prior close.
• Overall analyst sentiment remains constructive: 14 analysts rate TRGP a Buy and 3 rate it a Hold, with a consensus price target of $263.93. Several firms, including Mizuho, UBS, RBC, and Wells Fargo, recently lifted their targets as well.
• Targa Resources recently missed earnings and revenue estimates for the quarter, reporting EPS of $2.21 versus $2.48 expected and revenue of $4.09 billion versus $4.68 billion expected. Despite that miss, the stock has traded near its yearly highs, opening at $248.10 on Monday.

Targa Resources (NYSE:TRGP - Get Free Report) had its target price hoisted by stock analysts at TD Cowen from $236.00 to $245.00 in a note issued to investors on Monday. The brokerage presently has a "hold" rating on the pipeline company's stock. TD Cowen's target price indicates a potential downside of 1.25% from the stock's previous close.

Several other equities research analysts also recently commented on TRGP. Mizuho increased their price objective on Targa Resources from $207.00 to $260.00 and gave the company an "outperform" rating in a report on Thursday, March 19th. UBS Group increased their price objective on Targa Resources from $228.00 to $280.00 and gave the company a "buy" rating in a report on Tuesday, March 24th. Royal Bank Of Canada increased their price objective on Targa Resources from $260.00 to $270.00 and gave the company an "outperform" rating in a report on Monday, April 13th. Wells Fargo & Company increased their price objective on Targa Resources from $264.00 to $270.00 and gave the company an "overweight" rating in a report on Friday. Finally, BMO Capital Markets reaffirmed an "outperform" rating and set a $241.00 price target on shares of Targa Resources in a report on Friday, February 20th. Fourteen analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $263.93.

Targa Resources Price Performance

NYSE TRGP opened at $248.10 on Monday. The business has a 50 day simple moving average of $242.08 and a 200 day simple moving average of $204.25. Targa Resources has a 52-week low of $144.14 and a 52-week high of $261.95. The company has a debt-to-equity ratio of 5.64, a quick ratio of 0.62 and a current ratio of 0.72. The stock has a market cap of $53.25 billion, a price-to-earnings ratio of 25.09, a PEG ratio of 1.60 and a beta of 0.75.

Targa Resources (NYSE:TRGP - Get Free Report) last posted its earnings results on Thursday, May 7th. The pipeline company reported $2.21 earnings per share (EPS) 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 the consensus estimate of $4.68 billion. Analysts anticipate that Targa Resources will post 10.32 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Lindsey Cooksen sold 435 shares of the company's stock in a transaction on Thursday, February 26th. The stock was sold at an average price of $231.72, for a total transaction of $100,798.20. Following the completion of the sale, the director owned 11,670 shares in the company, valued at approximately $2,704,172.40. This represents a 3.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider D. Scott Pryor sold 17,500 shares of the business's stock in a transaction on Wednesday, February 25th. The stock was sold at an average price of $228.92, for a total value of $4,006,100.00. Following the completion of the transaction, the insider directly owned 31,938 shares in the company, valued at approximately $7,311,246.96. This represents a 35.40% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 104,929 shares of company stock valued at $24,692,134 in the last 90 days. Company insiders own 1.37% of the company's stock.

Institutional Trading of Targa Resources

A number of institutional investors have recently added to or reduced their stakes in TRGP. Korea Investment CORP increased its position in shares of Targa Resources by 37.4% during the 3rd quarter. Korea Investment CORP now owns 260,760 shares of the pipeline company's stock valued at $43,688,000 after purchasing an additional 70,998 shares during the last quarter. Alps Advisors Inc. lifted its holdings in Targa Resources by 5.5% in the 3rd quarter. Alps Advisors Inc. now owns 143,904 shares of the pipeline company's stock worth $24,110,000 after buying an additional 7,497 shares during the period. Commonwealth Equity Services LLC lifted its holdings in Targa Resources by 137.9% in the 3rd quarter. Commonwealth Equity Services LLC now owns 66,636 shares of the pipeline company's stock worth $11,164,000 after buying an additional 38,626 shares during the period. Envestnet Asset Management Inc. lifted its holdings in Targa Resources by 5.0% in the 3rd quarter. Envestnet Asset Management Inc. now owns 484,462 shares of the pipeline company's stock worth $81,167,000 after buying an additional 22,969 shares during the period. Finally, NFC Investments LLC purchased a new position in shares of Targa Resources in the 3rd quarter valued at approximately $8,478,000. Hedge funds and other institutional investors 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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