Bubble or no bubble, this is the best stock for AI exposure: analyst
Investing.com - RBC Capital has raised its price target on Targa Resources (NYSE:TRGP) to $213.00 from $208.00 while maintaining an Outperform rating following the company’s third-quarter 2025 results. This target sits below the analyst high target of $261, according to InvestingPro data.
The firm noted that Targa Resources reported strong third-quarter 2025 performance and expects to be at the high end of its 2025 Adjusted EBITDA guidance range, which RBC suggests could prove conservative. The company’s last twelve months EBITDA stands at $4.63 billion, with revenue growing at 7.17% year-over-year.
RBC Capital cited strong and growing volumes as support for Targa’s recently announced growth projects, which are expected to provide operating leverage for the company. With a PEG ratio of 0.66, Targa appears attractively valued relative to its growth prospects.
The analyst firm anticipates these developments will lead to a cash flow inflection in late 2027 and strong free cash flow generation starting in 2028 and beyond.
RBC’s price target increase from $208 to $213 reflects its updated estimates and a valuation roll-forward to 2027.
In other recent news, Targa Resources Inc . reported its third-quarter 2025 earnings, beating analysts’ expectations with an earnings per share (EPS) of $2.13, compared to the forecasted $2.11. However, the company experienced a revenue miss during this period. Additionally, Targa Resources announced the pricing of a $1.75 billion public offering of senior notes in two tranches. This offering includes $750 million of 4.350% Senior Notes due 2029 and $1.0 billion of 5.400% Senior Notes due 2036. The notes were priced close to their face value and the offering is expected to close in November 2025, subject to customary closing conditions. These developments reflect the company’s ongoing financial strategies and market activities.
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