Targa Resources (TRGP) PT Raised to $226 at Mizuho

Mizuho analyst Gabriel Moreen raised the price target on Targa Resources (NYSE: TRGP) to $226.00 (from $208.00) while maintaining a Outperform rating.

The analyst commented: "TRGP has benefited from another stretch of outperformance since its 3Q24 update (+24.1% vs. AMEI: 10.9%) following strong signaling its medium-term growth outlook is tracking better than expected - evidenced by its accelerated FID of two new Permian processing plants. The bar may be high for TRGP's 4Q24 update tomorrow, considering more of its volume momentum appears priced in and will be a multi-year phenomenon. However, we expect continued constructive commentary around the Permian growth outlook that should make another year of elevated capex more palatable. We believe the magnitude of FY25 capex will be an afterthought and expect investor focus to be around y/y growth expectations for inlet volumes, the cadence of the next Permian processing additions, and TRGP's game-plan for downstream expansions given growing G&P volumes. Raising PT to $226 on higher ests as we assign an 11.25x target EV/EBITDA multiple to FY27E adj EBITDA ($5,468mn)."

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