Gold prices edge lower; heading for weekly losses ahead of U.S.-Russia talks
Investing.com - Goldman Sachs has lowered its price target on Targa Resources (NYSE:TRGP) to $186.00 from $188.00 while maintaining a Buy rating following the company’s second-quarter 2025 earnings report. With a market capitalization of $36.2 billion and a PEG ratio of 0.51, InvestingPro data suggests the stock is trading at an attractive valuation relative to its growth potential.
The midstream energy company reported better-than-expected quarterly results, with stronger logistics and transportation margins offsetting lower gathering and processing POP (percent of proceeds) margins and higher costs. The company’s financial health is rated as GOOD by InvestingPro, supported by revenue growth of 5% and EBITDA of $4.5 billion in the last twelve months.
Targa management reiterated its 2025 EBITDA guidance and expectations for strong growth in 2026, noting that third-quarter Permian Basin volumes are already trending above second-quarter levels with no changes to customer activity through year-end.
The company increased its 2025 capital expenditure guidance to $3 billion from the previous range of $2.6-2.8 billion, citing accelerated project completion and a new Permian intrabasin residue gas pipeline announcement.
Goldman Sachs maintained its Buy rating based on Targa’s relatively strong performance compared to other Permian midstream peers this quarter, which the firm believes warrants a stronger premium despite a challenging forward oil macro outlook.
In other recent news, Targa Resources reported its second-quarter 2025 earnings, which exceeded analyst expectations for earnings per share (EPS) but did not meet revenue forecasts. The company achieved an EPS of $1.90, slightly above the projected $1.88, marking a 1.06% surprise. However, revenue was reported at $4.26 billion, falling short of the anticipated $4.77 billion by 10.69%. In another development, CFRA has raised its price target for Targa Resources to $177 from $168, maintaining a Hold rating on the stock. This adjustment reflects analyses using a combination of EV/EBITDA and DCF models, with a 10x multiple applied to projected 2026 EBITDA. These developments are part of the latest updates concerning Targa Resources.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.