UPDATE: Credit Suisse Upgrades Targa Resources (TRGP) to Outperform

Credit Suisse analyst Spiro Dounis upgraded Targa Resources (NYSE: TRGP) from Neutral to Outperform with a price target of $25.00 (from $22.00).

The analyst comments "We upgrade to Outperform and increase our TP to $25. We maintain out NAV-based methodology which now implies a 2021 EV/EBITDA multiple of 8.25x, up from 7.5x due to faster than expected de-leveraging, a more accretive DevCo multiple, and higher base EBITDA. We increase our ‘21/’22 EBITDA estimates by 3%/10% on an improved G&P outlook and sooner than expected DevCo purchase. TRGP boasts a FCF yield above 20% following the DevCo interest purchase and over 15% in ‘21 which is among the highest under coverage, especially for a C-Corp."

For an analyst ratings summary and ratings history on Targa Resources click here. For more ratings news on Targa Resources click here.

Shares of Targa Resources closed at $20.53 yesterday.

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