Barclays Maintains an 'Overweight' on Targa Resources (TRGP); Raising Dividend Growth Forecast to 18%
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Price: $275.79 +3.34%
Rating Summary:
23 Buy, 10 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
23 Buy, 10 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barclays maintains an 'Overweight' on Targa Resources (NYSE: TRGP) price target of $39.00.
Barclays analyst says, "We raise our five-year dividend forecast to 18% CAGR: The key assumption includes NGLS raising distribution at 7.6% per year and issuing $240 mm per year of equity. We believe our growth forecast and equity issuance assumptions can be conservative, as they are below current trends. In 2011, NGLS is on track to raise distribution by 8% YoY and has issued more than $300 mm of equity year to date."
"Underlying MLP (NGLS) indicated upside to its $500 mm organic project budget for 2012, which can result in an upside to TRGP dividend growth forecast: NGLS is in the process of executing $860 mm of organic projects, of which $500 mm will be spent in 2012. All of the projects are scheduled to come on line by 3Q 2013 and are expected to generate 5-7x returns. While not included in the current budget, there are a number of additional projects/deals that are in active discussions including CBF train 5, Permian G&P expansion, and additional terminal assets acquisition. TRGP's cash flow has upside as these potential projects become firm."
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 $34.84 yesterday.
Barclays analyst says, "We raise our five-year dividend forecast to 18% CAGR: The key assumption includes NGLS raising distribution at 7.6% per year and issuing $240 mm per year of equity. We believe our growth forecast and equity issuance assumptions can be conservative, as they are below current trends. In 2011, NGLS is on track to raise distribution by 8% YoY and has issued more than $300 mm of equity year to date."
"Underlying MLP (NGLS) indicated upside to its $500 mm organic project budget for 2012, which can result in an upside to TRGP dividend growth forecast: NGLS is in the process of executing $860 mm of organic projects, of which $500 mm will be spent in 2012. All of the projects are scheduled to come on line by 3Q 2013 and are expected to generate 5-7x returns. While not included in the current budget, there are a number of additional projects/deals that are in active discussions including CBF train 5, Permian G&P expansion, and additional terminal assets acquisition. TRGP's cash flow has upside as these potential projects become firm."
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 $34.84 yesterday.
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