Targa Resources: The Price Is Not Always Right (Rating Downgrade)

Nov. 13, 2024 10:44 AM ETTarga Resources Corp. (TRGP) StockWES, KMI, WMB10 Comments
Ronald Ferrie profile picture
Ronald Ferrie
2.87K Followers
(9min)

Summary

  • TRGP's price performance over the last several months has been incredibly strong, pushing it out past my price target for 2026.
  • The new growth projects announced by the company will likely cause the company to increase debt levels in 2025, although still at manageable levels.
  • Targa Resources will become a full taxpayer by 2027, negativity will impact FCF.
  • The current valuation looks to fairly value 2026 profitability, limiting upside from here. As a result, I have downgraded the company to a HOLD.

JulPo

Thesis

I last covered Targa Resources (NYSE:TRGP) in August. Since then, the stock has been on fire, up nearly 50%, far exceeding my expectations. The stock even flew by my price target of $180/share, which I had not projected the company to achieve until

Recommended For You

Create a free account to read the full article

Gain access to the world’s leading investment community.

Already registered?

By creating an account using any of the options above, you agree to the Terms of Use & Privacy Policy
or

About TRGP Stock

SymbolLast Price% Chg
TRGP
204.301.44%
Post206.621.14%
Created with Highcharts 11.2.0Oct 31Nov 8Nov 18Nov 25150200250
Market Cap
$44.55B
PE (FWD)
34.30
Yield
1.35%
Rev Growth (YoY)
-0.98%
Short Interest
1.51%
Prev. Close
$201.39
Compare to Peers

More on TRGP

Trending Analysis

See All Analysis »

Trending News

See All News »