UBS Raises Price Target on Targa Resources (TRGP) to $58; Reiterates Buy
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
UBS reiterated a Buy rating on Targa Resources (NYSE: TRGP), and raised the price target to $58.00 (from $53.00). TRGP saw a $75MM benefit YTD in 2016 from previously acquired hedges; however, in 2017 the recent hedging activity and pricing levels mutes the upside. UBS updated EBITDA estimates for 2016/2017/2018 to $1,036MM/$1,115MM/$1,287MM from $1,066MM/$1,178MM/$1,283MM.
Analyst Shneur Gershuni commented, "In 2017, we expect investors will continue to focus on the crude oil and natural gas production growth in the Permian and TRGP will be one of the top G&P beneficiaries. We see TRGP’s Permian inlet volumes increasing ~10% YOY in 2017. As expected, TRGP announced a new 200MMcf/d processing plant in the Midland basin that is expected to come online in 2017. TRGP also completed a 200MMcf/d Buffalo plant (Martin County – Midland Basin) in mid-2016. We note that rig count in the Martin County increased to 22 rigs in late November, up from 13 rigs in mid-September when we published our deep dive G&P Permian note."
Shares of Targa Resources closed at $53.29 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UBS Cuts Price Target on Restoration Hardware (RH) to $34 Following 3Q
- Jefferies Raises Price Target on Finisar (FNSR) to $37 Following 2Q Beat and Raise
- Allergen (AGN) PT, Estimates Trimmed at Credit Suisse
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesUBS, Crude Oil
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!