Targa Resources (TRGP) PT Raised to $142 at Scotiabank

Scotiabank analyst Tristan J. Richardson raised the price target on Targa Resources (NYSE: TRGP) to $142.00 (from $128.00) while maintaining a Sector Outperform rating.

The analyst commented: "We expect a solid quarter from TRGP on broader Permian growth sequentially. While management last quarter highlighted potential areas that could create a down quarter in 2Q, in our view broader Permian strength in volumes likely was a better than expected partial offset, and as such our estimate is only ~4% lower sequentially. We expect there is room not only for a modest increase to the FY24 outlook, but also see room for management to offer directional comments on FY25 vs FY24 and/or the illustrative growth outlook offered in recent quarters (illustrative $300M of EBITDA growth potential at $1.7B of capex). We are increasing our target to $142 from $128 previously on continued Permian optimism, expanding our target multiple to 10x our 2025E EBITDA (10x 2026E EBITDA)."

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