Analyst Expectations For Targa Resources's Future

Targa Resources TRGP underwent analysis by 6 analysts in the last quarter, revealing a spectrum of viewpoints 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.

Analysts have set 12-month price targets for Targa Resources, revealing an average target of $215.83, a high estimate of $226.00, and a low estimate of $204.00. This current average reflects an increase of 10.23% from the previous average price target of $195.80.

Deciphering Analyst Ratings: An In-Depth Analysis

A comprehensive examination of how financial experts perceive Targa Resources is derived from recent analyst actions. The following is a detailed summary of 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: Understanding forecasts, analysts offer estimates for Targa Resources's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Targa Resources's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Targa Resources analyst ratings.

About Targa Resources

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.

Targa Resources: A Financial Overview

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Negative Revenue Trend: Examining Targa Resources's financials over 3 months reveals challenges. As of 30 September, 2024, the company experienced a decline of approximately -1.15% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Energy sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Targa Resources's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 9.98%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Targa Resources's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 15.25% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Targa Resources's ROA stands out, surpassing industry averages. With an impressive ROA of 1.78%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Targa Resources's debt-to-equity ratio is notably higher than the industry average. With a ratio of 5.57, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Analyst Ratings: Simplified

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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