Wells Fargo analyst Michael Blum has maintained their bullish stance on TRGP stock, giving a Buy rating yesterday.
Michael Blum has given Targa Resources a Buy rating due to a combination of factors that signal a strong growth outlook for the company. His optimism is rooted in Targa’s above-average growth potential, particularly driven by its operations in the Permian region. Additionally, the company is showing a robust free cash flow (FCF) trajectory and an improving profile for cash returns to shareholders. Blum’s confidence in the stock is further bolstered by Targa’s ability to exceed earnings expectations and by its guidance, which indicates steady EBITDA growth.
Furthermore, the analyst has adjusted his EBITDA estimates upward for the years 2024 and 2025, reflecting anticipated higher volumes in the Grand Prix segment. Despite an increase in capital expenditure forecasts for growth in 2024, Targa’s long-term outlook includes significant investments in infrastructure that should support continued expansion and gas growth in the Permian. The company’s strategic foresight in planning new Permian gas takeaway capacities and managing the transition to becoming a cash taxpayer speaks to its forward-looking management approach, which is another reason for the Buy rating.
In another report released yesterday, Bank of America Securities also reiterated a Buy rating on the stock with a $104.00 price target.
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Targa Resources (TRGP) Company Description:
Targa Resources Corp. provides midstream natural gas and natural gas liquids services. It also provides gathering, storing, and terminaling crude oil and storing, terminaling, and selling refined petroleum products. It operates through the following business segments: Gathering and Processing, and Logistics and Transportation. The Gathering and Processing segment includes assets used in the gathering of natural gas produced from oil and gas wells and processing this raw natural gas into merchantable natural gas by extracting NGLs and removing impurities; and assets used for crude oil gathering and terminaling. The Logistics and Transportation segment includes all the activities necessary to convert mixed NGLs into NGL products and provides certain value added services such as storing, fractionating, terminaling, transporting and marketing of NGLs and NGL products, including services to LPG exporters; storing and terminaling of refined petroleum products and crude oil and certain natural gas supply and marketing activities in support of its other businesses. The company was founded on October 27, 2005 and is headquartered in Houston, TX.
Read More on TRGP:
- Targa Resources Corp. Announces Form 10-K Available
- Targa Resources Emphasizes Multi-Channel Disclosure Practices
- Targa Resources Corp. Reports Record Fourth Quarter and Full Year 2023 Financial Results and Provides Outlook for 2024 and Positioning in 2025
- Is TRGP a Buy, Before Earnings?
- Targa Resources price target raised to $95 from $94 at Seaport Research
