TD Cowen Issues Positive Forecast for Targa Resources (NYSE:TRGP) Stock Price

Key Points

• TD Cowen raised its price target for Targa Resources from $270 to $275 while maintaining a “hold” rating, implying about 2.94% upside. Analysts overall remain more positive, with a consensus “Moderate Buy” rating and a $292 target.
• Targa reported quarterly EPS of $3.54, well above the $2.83 consensus estimate, while adjusted EBITDA rose 38% year over year to $1.603 billion. Strong Permian volumes and new infrastructure projects prompted the company to expect full-year EBITDA toward the top of its guidance range.
• Despite strong operating results and a 25% year-over-year dividend increase, investors should monitor $19.6 billion of debt, approximately $4.5 billion in planned 2026 growth spending, lower gas prices and revenue that missed estimates.

Targa Resources (NYSE:TRGP - Get Free Report) had its price objective increased by TD Cowen from $270.00 to $275.00 in a research report issued on Friday. The firm presently has a "hold" rating on the pipeline company's stock. TD Cowen's target price suggests a potential upside of 2.94% from the company's current price.

Several other brokerages have also issued reports on TRGP. Royal Bank Of Canada reiterated an "outperform" rating and set a $310.00 price objective on shares of Targa Resources in a report on Tuesday, July 21st. Morgan Stanley reaffirmed an "overweight" rating and issued a $333.00 target price on shares of Targa Resources in a research report on Tuesday, July 21st. Barclays reaffirmed an "overweight" rating and set a $284.00 price target on shares of Targa Resources in a research note on Friday. Seaport Research Partners reissued a "neutral" rating on shares of Targa Resources in a research note on Monday, May 4th. Finally, Mizuho increased their price objective on Targa Resources from $260.00 to $300.00 and gave the stock an "outperform" rating in a report on Wednesday, May 27th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, Targa Resources presently has a consensus rating of "Moderate Buy" and a consensus price target of $292.00.

Targa Resources Stock Performance

Shares of TRGP opened at $267.14 on Friday. The company has a market capitalization of $57.34 billion, a PE ratio of 27.01, a PEG ratio of 1.32 and a beta of 0.72. 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 company's 50 day moving average price is $268.80 and its 200 day moving average price is $247.87. Targa Resources has a 52 week low of $144.14 and a 52 week high of $291.04.

Targa Resources (NYSE:TRGP - Get Free Report) last released its earnings results on Thursday, August 6th. The pipeline company reported $3.54 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.83 by $0.71. The company had revenue of $4.44 billion during the quarter, compared to the consensus estimate of $4.90 billion. Targa Resources had a net margin of 12.87% and a return on equity of 71.00%. Research analysts expect that Targa Resources will post 10.84 EPS for the current fiscal year.

Insider Activity at Targa Resources

In related news, Director Charles R. Crisp sold 10,602 shares of the firm's stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $255.96, for a total value of $2,713,687.92. Following the transaction, the director directly owned 66,492 shares of the company's stock, valued at approximately $17,019,292.32. This trade represents a 13.75% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 1.37% of the company's stock.

Hedge Funds Weigh In On Targa Resources

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Atlantic Union Bankshares Corp acquired a new stake in shares of Targa Resources in the fourth quarter worth $27,000. Miller Capital Partners Inc. bought a new position in Targa Resources in the 4th quarter worth $30,000. Leonteq Securities AG acquired a new position in Targa Resources during the 4th quarter worth $31,000. CoreCap Advisors LLC lifted 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. Finally, Godfrey Financial Associates Inc. bought a new stake in Targa Resources during the fourth quarter valued at about $37,000. Institutional investors and hedge funds own 92.13% of the company's stock.

More Targa Resources News

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

• Positive Sentiment: Earnings significantly exceeded expectations. Second-quarter adjusted earnings were $3.54 per share, above the $2.83 analyst consensus and up from $2.87 a year earlier. Net income attributable to Targa rose 22% year over year to $765 million. Targa Resources Q2 Earnings Top Estimates
• Positive Sentiment: Record operating performance improved the outlook. Adjusted EBITDA reached $1.603 billion, up 38% year over year and 14% sequentially. Targa now expects full-year 2026 adjusted EBITDA toward the top of its $5.7 billion-$5.9 billion guidance range. Targa beats second-quarter profit estimates
• Positive Sentiment: Volume growth and new infrastructure supported results. Permian inlet volumes increased 14% year over year, while NGL transportation, fractionation and export volumes reached records. Targa also brought its Train 11 fractionator, Delaware Express NGL Pipeline expansion and East Driver processing plant online, with East Driver starting ahead of schedule.
• Positive Sentiment: Shareholder returns increased. The quarterly dividend was raised 25% year over year to $1.25 per share, and Targa repurchased $80 million of stock during the quarter. Targa Resources Reports Record Q2 Results
• Neutral Sentiment: Revenue was mixed. Quarterly revenue of $4.44 billion increased 4% year over year but fell short of the $4.90 billion analyst estimate. Lower natural-gas prices and unfavorable hedge impacts pressured commodity sales, although fee-based midstream revenue rose 36%.
• Negative Sentiment: Leverage and spending remain risks. Targa reported approximately $19.6 billion of consolidated debt and plans roughly $4.5 billion in 2026 growth capital expenditures. Lower gas prices, rising depreciation and operating costs, and temporary producer curtailments caused by negative Waha prices could weigh on future results.

Targa Resources Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source