Analyst Spiro M. Dounis of Citi maintained a Buy rating on Targa Resources (TRGP – Research Report), reducing the price target to $197.00.
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Spiro M. Dounis has given his Buy rating due to a combination of factors that highlight Targa Resources’ potential for growth despite a slower economic environment. The company is expected to achieve a 6% year-over-year EBITDA growth in 2026, even if there is no increase in Permian crude production during that period. This growth is supported by the potential increase in gas production from top-tier Permian acreage, where Targa Resources has significant exposure.
Furthermore, despite a decline in cash flows, Targa Resources is anticipated to manage its capital expenditures efficiently and maintain the ability to repurchase approximately $0.5 billion of stock annually. The valuation has been adjusted to $197 per share, reflecting slower growth in the Permian Basin due to lower commodity prices. However, Targa Resources remains one of the fastest-growing midstream companies, with the potential to return over 40% of cash flows through dividends and buybacks, contributing to an expected share price return of 23.1%.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a $191.00 price target.
Based on the recent corporate insider activity of 75 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TRGP in relation to earlier this year.