Analysts Bullish on Targa Resources as 100% Rate it Strong Buy or Buy

JP Morgan's Jeremy Tonet raised their price target on Targa Resources (NYSE: TRGP) by 2.5% from $122 to $125 on 2024/03/06. The analyst maintained their Strong Buy rating on the stock.

Tonet's decision to increase the price target was driven by recent meetings with Targa Resources' management. According to Tonet, the meetings served as a catalyst for their price target move. The analyst highlighted several factors that influenced their positive outlook on the company.

Tonet expressed enthusiasm for Targa Resources' "best in class" Permian leverage, which positions the company favorably in the energy industry. Additionally, the analyst praised the company's increasingly defined capital allocation strategy, indicating a thoughtful approach to managing resources. Tonet also noted that Targa Resources' valuation remains discounted, further adding to its investment appeal.

The analyst's rating aligns with the sentiment of other top-rated analysts, as 100% of them currently rate TRGP as a Strong Buy or Buy. This consensus reflects the market's overall positive outlook on the stock. Notably, no analysts see TRGP as a Hold, and there are no recommendations to sell the stock.

Looking ahead, analysts forecast that TRGP's upcoming year will deliver earnings per share (EPS) of $5.81. If these projections hold true, TRGP's next yearly EPS will experience a significant increase of 57.5% on a year-over-year basis. This anticipated growth further bolsters the investment case for Targa Resources.

In terms of stock performance, TRGP has seen a notable increase since its last quarterly report on 2023/12/31. The stock price has risen by 20.1% during this period. Moreover, TRGP has demonstrated strong year-over-year growth, with a 32.9% increase in stock price. It is worth noting that TRGP has outpaced the S&P 500, which has seen a 26.1% increase over the same period.

Jeremy Tonet, the JP Morgan analyst responsible for the updated rating and price target, ranks in the top 23% of Wall Street analysts according to WallStreetZen. With an average return of 2.8% and a 57.8% win rate, Tonet has established their expertise in the Technology and Industrials sectors, among others. Their analysis and recommendations carry weight within the investment community.

Targa Resources Corporation, along with its subsidiary Targa Resources Partners LP, operates midstream energy assets in North America. The company's operations include gathering, compressing, treating, processing, transporting, and selling natural gas and natural gas liquids (NGL) and NGL products through an extensive network of pipelines spanning 28,400 miles. Targa Resources also engages in the purchase, storage, terminaling, and sale of crude oil. Established in 2005, Targa Resources is headquartered in Houston, TX.

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WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.