Breaking Down Targa Resources: 11 Analysts Share Their Views

During the last three months, 11 analysts shared their evaluations of Targa Resources (NYSE:TRGP), revealing diverse outlooks from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $202.55, a high estimate of $228.00, and a low estimate of $178.00. A 0.22% drop is evident in the current average compared to the previous average price target of $203.00.

Exploring Analyst Ratings: An In-Depth Overview

The analysis of recent analyst actions sheds light on the perception of Targa Resources by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Targa Resources. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Targa Resources compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Targa Resources's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Targa Resources's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Targa Resources analyst ratings.

Discovering Targa Resources: A Closer Look

Targa Resources is a midstream firm that primarily operates gathering and processing assets with substantial positions in the Permian, Stack, Scoop, and Bakken plays. It has fractionation capacity at Mont Belvieu and operates a liquefied petroleum gas export terminal. The Grand Prix natural gas liquids pipeline is another important asset.

A Deep Dive into Targa Resources's Financials

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Decline in Revenue: Over the 3M period, Targa Resources faced challenges, resulting in a decline of approximately -0.02% in revenue growth as of 31 March, 2025. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Energy sector.

Net Margin: Targa Resources's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 4.38%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Targa Resources's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 7.93%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Targa Resources's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.88%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a high debt-to-equity ratio of 6.61, Targa Resources faces challenges in effectively managing its debt levels, indicating potential financial strain.

The Significance of Analyst Ratings Explained

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.