Citi Reiterates Buy Rating on Targa Resources (TRGP)

Citi analyst Spiro Dounis reiterated a Buy rating and $150.00 price target on Targa Resources (NYSE: TRGP).

The analyst comments "We update our model ahead of earnings and estimate 3Q24 EBITDA of $1.02bln, just above the $1.0bln Street mean. We expect sequentially stronger EBITDA as TRGP continues to execute on its growth backlog. Specifically, management pointed toward ~200mmcf/d sequential Permian volume growth at the time of 2Q24 earnings (August) and we suspect this growth continued throughout the quarter. Continued ramp on recently placed processing capacity, downstream volume growth, a full quarter of Frac Train 9 and continued export strength (we don’t expect meaningful Hurricane headwinds) all likely drive growth across both segments, in our view. We don’t expect a 2025 outlook until 4Q24 earnings, although management likely continues to message toward a strong 2024 exit rate with projects like Daytona, GCF, and Greenwood II either currently ramping or soon to enter service. We expect buybacks to continue although maybe at a slower pace than 2Q24."

For an analyst ratings summary and ratings history on Targa Resources click here. For more ratings news on Targa Resources click here.

Shares of Targa Resources closed at $150.58 yesterday.

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