Mizuho Securities analyst Gabe Moreen has maintained their bullish stance on TRGP stock, giving a Buy rating on February 16.
Gabe Moreen’s Buy rating on Targa Resources (ticker: TRGP) is anchored by the company’s transparent multi-year outlook which has provided a high degree of visibility into future growth and capital expenditure forecasts. Despite not having a specific forecast for FY25 adjusted EBITDA, the guidance for FY24 and the expected run-rate capex through the end of the decade underscore a robust long-term outlook. Moreen also notes that the fourth quarter of 2023 adjusted EBITDA outperformed expectations, which suggests a positive momentum leading into 2024.
In addition, the planned capital expenditures are geared toward supporting high-single-digit percentage growth in Permian inlet gas volumes and maintaining volume growth with a relatively moderate capital requirement. Targa Resources also provided a reassuring perspective on its financial health by estimating its free cash flow capacity in a low-growth scenario and offering long-term equity return guidance. The combination of these factors, along with a belief in minimal earnings leakage and the company’s ability to exceed year-over-year earnings growth in FY25, underpins Moreen’s optimistic Buy rating for TRGP.
Moreen covers the Energy sector, focusing on stocks such as Sunoco, Energy Transfer, and Targa Resources. According to TipRanks, Moreen has an average return of 7.2% and a 76.45% success rate on recommended stocks.
In another report released on February 16, Stifel Nicolaus also maintained a Buy rating on the stock with a $111.00 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 reports Q4 revenue $4.24M, consensus $3.85B
- 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?
