Update shared on29 Aug 2025
Fair value Increased 1.29%Analysts have modestly raised their price target for Targa Resources to $207.95, citing strong fundamentals, resilient cash flows, and ongoing strength in Permian volumes, though some caution that substantial stock appreciation has fully reflected growth potential.
Analyst Commentary
- Bullish analysts cite Targa’s strong fundamentals, resilient cash flows, and the ability to return capital to shareholders as reasons for increased price targets, especially given expectations for higher volumes and stable producer activity in the Permian.
- The company is seen as insulated from certain headwinds along the Permian natural gas liquids value chain, supporting positive outlooks, though some note growth is fully priced in after significant stock appreciation.
- Certain bullish analysts expect gas-levered midstream companies, like Targa, to benefit from the structure of shale wells, despite sector-wide slower basin development and "capex creep."
- Despite Q2 sector volatility and a mixed earnings season, most positive analysts maintain an optimistic view on Targa due to the sector’s resilience and limited changes in customer production plans.
- Bearish analysts point to model updates post-Q2, stock price appreciation, and expectations of range-bound valuations with limited near-term catalysts as reasons for lowering or initiating more cautious price targets.
What's in the News
- NGL and natural gas inlet production increased year-over-year in both the second quarter and first half; crude oil production declined in the Badlands and Permian during Q2.
- Management continues to focus on organic growth but remains open to bolt-on acquisitions, with a high bar for potential deals.
- Announced a share repurchase program authorizing up to $1 billion in buybacks.
- Repurchased 1,955,099 shares for $324.3 million during Q2, totaling 2,606,262 shares for $449.27 million since August 2024.
- Provided full-year 2025 net income guidance of $1,830 million.
Valuation Changes
Summary of Valuation Changes for Targa Resources
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $205.30 to $207.95.
- The Consensus Revenue Growth forecasts for Targa Resources has risen from 10.7% per annum to 11.4% per annum.
- The Net Profit Margin for Targa Resources has fallen slightly from 10.54% to 10.23%.
Disclaimer
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