UPDATE: Wolfe Research Upgrades Targa Resources (TRGP) to Outperform, 'Premium story at a discount'

April 14, 2021 4:00 AM EDT
Get Alerts TRGP Hot Sheet
Price: $37.73 --0%

Rating Summary:
    18 Buy, 11 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 22 | Down: 15 | New: 32
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(Updated - April 14, 2021 4:28 AM EDT)

Wolfe Research analyst Keith Stanley upgraded Targa Resources (NYSE: TRGP) from Peerperform to Outperform with a price target of $37.00.

The analyst comments "The company exceeded expectations through the downturn and the stock rebounded nicely. However, the stock has since cooled off and is only in line with the group YTD, creating a better entry point. The current backdrop of $60 oil is constructive for Targa’s increasingly Permian-levered NGL business. We forecast well above-average 8%/yr EBITDA growth through 2023 from operational leverage at existing assets, the roll-off of below market hedges, and further supplemented by the anticipated accretive buy-in of high-quality assets in the DevCo structure in 2022 for only 5-6x EBITDA. Near term, we think 2021 is tracking to the upper half of the guidance range given supportive NGL prices."

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 $31.64 yesterday.

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