Scotiabank raises Targa Resources stock price target to $201 on growth outlook

Published 15/07/2025, 14:00
Scotiabank raises Targa Resources stock price target to $201 on growth outlook

Investing.com - Scotiabank (TSX:BNS) raised its price target on Targa Resources (NYSE:TRGP) to $201.00 from $197.00 on Tuesday, while maintaining a Sector Outperform rating on the stock. According to InvestingPro data, analysts’ targets range from $157 to $244, with the stock currently trading at $172.46.

The price target increase comes as Scotiabank noted that TRGP shares have not yet recovered from market reactions following Liberation Day and OPEC+ announcements in early April, despite contrary commentary from the company.

Scotiabank observed that consensus price targets for Targa have begun moving higher, with some increasing by as much as $20 per share, and expects actual prices to gain upward momentum if the company continues to execute as planned.

Targa Resources reiterated expectations for a second-half weighted volume profile and reported typical seasonality with second-quarter inlet volumes at least 200 million cubic feet per day higher than first-quarter levels.

The company expressed satisfaction with its first-half operations and confirmed there have been no changes in communication from producer customers, which Scotiabank indicated should strengthen confidence in Targa’s near-term growth trajectory.

In other recent news, Targa Resources has been the focus of multiple analyst reports highlighting various aspects of its financial outlook and operational performance. UBS has maintained its Buy rating with a price target of $228, noting a revised second-quarter 2025 EBITDA estimate of $1,153 million, slightly down from their previous estimate. The firm expects a significant increase in Targa’s full fiscal year 2025 EBITDA to $4,792 million compared to 2024. Meanwhile, JPMorgan raised its price target to $209, maintaining an Overweight rating and noting strong operational momentum, with second-quarter adjusted EBITDA expected to be $1,144 million. Goldman Sachs, on the other hand, has lowered its price target to $188 due to a reduced outlook for the Permian Basin, although it still maintains a Buy rating. TD Cowen initiated coverage with a Hold rating and a $192 price target, citing limited upside potential despite Targa’s strong operational outlook. RBC Capital raised its price target to $205, expressing optimism after investor meetings and highlighting Targa’s cash return capabilities as a positive factor. These developments reflect a range of perspectives on Targa Resources’ financial health and future prospects.

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