Targa Resources price target raised to $109 from $106 at RBC Capital

RBC Capital raised the firm’s price target on Targa Resources to $109 from $106 and keeps an Outperform rating on the shares. The company’s outlook for 2024 adjusted EBITDA and plans to spend materially less on growth capex in 2025 presents an attractive setup to generate meaningful free cash flow, the analyst tells investors in a research note. RBC adds that Targa’s expected turn to positive free cash flow will enhance the company’s financial flexibility and could provide “compelling returns” to shareholders.