Targa Resources (NYSE:TRGP) Given Outperform Rating at Royal Bank Of Canada

Key Points

• Royal Bank of Canada raised Targa Resources' price target from $205.00 to $208.00, implying a potential upside of 25.75% from the stock's previous close.
• In addition to Royal Bank of Canada's adjustment, other firms have varied their price targets, with JPMorgan Chase increasing theirs to $209.00 and Goldman Sachs decreasing theirs to $194.00, reflecting a diverse analyst opinion.
• Targa Resources reported impressive earnings of $2.87 per share for the last quarter, exceeding analysts' expectations of $1.95, despite having lower revenue than anticipated at $4.26 billion.

Targa Resources (NYSE:TRGP - Get Free Report)'s stock had its "outperform" rating reiterated by analysts at Royal Bank Of Canada in a report issued on Tuesday, MarketBeat.com reports. They currently have a $208.00 price objective on the pipeline company's stock, up from their previous price objective of $205.00. Royal Bank Of Canada's target price suggests a potential upside of 24.78% from the company's current price.

Other equities analysts have also issued reports about the stock. The Goldman Sachs Group lowered their price target on shares of Targa Resources from $218.00 to $194.00 and set a "buy" rating on the stock in a research report on Monday, May 5th. TD Cowen assumed coverage on shares of Targa Resources in a report on Monday, July 7th. They issued a "hold" rating and a $192.00 target price on the stock. UBS Group reduced their price target on shares of Targa Resources from $259.00 to $228.00 and set a "buy" rating on the stock in a research note on Thursday, May 15th. Citigroup cut their target price on shares of Targa Resources from $227.00 to $197.00 and set a "buy" rating on the stock in a research report on Friday, May 9th. Finally, JPMorgan Chase & Co. lifted their target price on shares of Targa Resources from $189.00 to $209.00 and gave the stock an "overweight" rating in a research report on Thursday, July 10th. Three investment analysts have rated the stock with a hold rating, thirteen have given a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $209.00.

Targa Resources Price Performance

Shares of TRGP stock traded down $1.35 during trading hours on Tuesday, reaching $166.69. 1,787,743 shares of the company were exchanged, compared to its average volume of 1,884,959. Targa Resources has a fifty-two week low of $136.60 and a fifty-two week high of $218.51. The stock's fifty day moving average is $168.61 and its two-hundred day moving average is $177.46. The company has a market cap of $35.87 billion, a price-to-earnings ratio of 23.58, a P/E/G ratio of 1.04 and a beta of 1.12. The company has a debt-to-equity ratio of 5.93, a current ratio of 0.69 and a quick ratio of 0.56.

Targa Resources (NYSE:TRGP - Get Free Report) last issued its earnings results on Thursday, August 7th. The pipeline company reported $2.87 EPS for the quarter, beating the consensus estimate of $1.95 by $0.92. Targa Resources had a net margin of 8.99% and a return on equity of 43.35%. The firm had revenue of $4.26 billion during the quarter, compared to the consensus estimate of $4.82 billion. Sell-side analysts forecast that Targa Resources will post 8.15 earnings per share for the current fiscal year.

Institutional Trading of Targa Resources

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Norges Bank acquired a new position in Targa Resources during the 2nd quarter worth about $708,366,000. GQG Partners LLC increased its holdings in Targa Resources by 64.0% during the 1st quarter. GQG Partners LLC now owns 3,614,307 shares of the pipeline company's stock worth $724,560,000 after purchasing an additional 1,410,747 shares during the period. Canada Pension Plan Investment Board boosted its position in shares of Targa Resources by 981.8% during the 4th quarter. Canada Pension Plan Investment Board now owns 1,144,109 shares of the pipeline company's stock worth $204,223,000 after acquiring an additional 1,038,350 shares in the last quarter. Nuveen LLC acquired a new position in shares of Targa Resources during the 1st quarter worth about $196,351,000. Finally, Wellington Management Group LLP boosted its position in shares of Targa Resources by 7.5% in the 1st quarter. Wellington Management Group LLP now owns 13,790,955 shares of the pipeline company's stock valued at $2,764,673,000 after purchasing an additional 962,631 shares during the period. 92.13% of the stock is currently owned by hedge funds and other institutional investors.

Targa Resources Company Profile

Targa Resources Corp., together with its subsidiary, Targa Resources Partners LP, owns, operates, acquires, and develops a portfolio of complementary domestic midstream infrastructure assets in North America. It operates in two segments, Gathering and Processing, and Logistics and Transportation. The company is involved in gathering, compressing, treating, processing, transporting, and selling natural gas; storing, fractionating, treating, transporting, and selling natural gas liquids (NGL) and NGL products, including services to liquefied petroleum gas exporters; and gathering, storing, terminaling, purchasing, and selling crude oil.