Jefferies Upgrades Targa Resources Partners, L.P. (NGLS) to Buy

Jefferies upgraded Targa Resources Partners, L.P. (NYSE: NGLS) from Hold to Buy with a price target of $16.00.

Analyst Christopher Sighinolfi commented: "We expect the NGLS/TRGP merger to close in 1Q16 and, based on our $26 pro-forma TRGP price target, we calculate an NGLS target price of $16; accordingly, we are upgrading NGLS units to Buy, from Hold, on valuation. In a pro-forma structure, we believe TRGP can sustain its current 91¢/qtr ($3.64/annualized) dividend through 2017 under current commodity strips without the need for equity capital or breaching TRP debt covenants. Moreover, the Targa entities have no debt maturities before 2018."

For an analyst ratings summary and ratings history on Targa Resources Partners, L.P. click here. For more ratings news on Targa Resources Partners, L.P. click here.

Shares of Targa Resources Partners, L.P. closed at $10.61 yesterday.

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