Street Calls of the Week
Targa Resources Inc. (NYSE:TRGP) stock reached a 52-week low, closing at $148.34. This decline, part of a sharp 8.81% drop over the past week, marks a significant point for the $32.66 billion midstream company, which has experienced a 1-year change of -6.24%. According to InvestingPro analysis, the stock appears fairly valued at current levels, with analysts setting price targets between $185 and $240. The energy infrastructure company, known for its extensive network of midstream assets in North America, has faced challenges in the market over the past year. Despite these headwinds, the company maintains a solid 2.64% dividend yield and has consistently paid dividends for 15 consecutive years. This recent dip to a 52-week low highlights the volatility and pressure within the energy sector, as Targa Resources navigates fluctuating commodity prices and broader economic conditions. Investors will be watching closely to see how the company responds to these ongoing challenges in the coming months, with InvestingPro subscribers having access to 12 additional exclusive insights about TRGP’s financial health and growth prospects.
In other recent news, Targa Resources reported stronger-than-expected second-quarter 2025 earnings, with improved logistics and transportation margins helping to counteract lower gathering and processing margins and increased costs. Goldman Sachs, while maintaining a Buy rating, adjusted its price target for Targa Resources to $186 due to a rise in capital expenditures. UBS reiterated its Buy rating and set a price target of $228, emphasizing the company’s growth prospects in the Permian Basin and its involvement in the Blackcomb pipeline project. Additionally, BMO Capital initiated coverage with an Outperform rating and a price target of $185, expressing optimism about Targa’s ability to drive EBITDA and free cash flow growth despite a lower rig environment.
Targa Resources announced plans to build the Speedway NGL Pipeline and a new gas processing plant, aimed at supporting increased production in the Permian Basin. The pipeline, with an initial capacity of 500,000 barrels per day, is expected to start operations in the third quarter of 2027. UBS also highlighted Targa’s competitive advantages in the Delaware Basin, noting its potential participation as a shipper on the Eiger pipeline project. These developments reflect Targa Resources’ strategic initiatives to expand its infrastructure and capitalize on growth opportunities in key regions.
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