Targa Resources (TRGP) Gets Boost from JPMorgan with New $209 Price Target

JPMorgan has increased its price target for Targa Resources (TRGP) to $209, maintaining an Overweight rating. The investment bank has aligned its figures with current commodity prices and maintains a positive outlook on Targa's ongoing producer activities. The average target price for TRGP is $204.79, with a high estimate of $244.00 and a low estimate of $158.44. The estimated GF Value for TRGP in one year is $121.25, suggesting a downside of 28.96% from the current price.

Title: JPMorgan Raises Price Target for Targa Resources to $209

July 2, 2025 - JPMorgan has increased its price target for Targa Resources (TRGP) to $209, maintaining an Overweight rating. The investment bank has aligned its figures with current commodity prices and maintains a positive outlook on Targa's ongoing producer activities. The average target price for TRGP is $204.79, with a high estimate of $244.00 and a low estimate of $158.44. The estimated GF Value for TRGP in one year is $121.25, suggesting a downside of 28.96% from the current price.

JPMorgan's new target represents significant upside from the current price of $170.69, although the stock is trading at a relatively high P/E ratio of 31.4x. The stock has demonstrated strong momentum with a 31% return over the past year. The firm expects Targa to report second-quarter 2025 adjusted EBITDA of $1,144 million, compared to the Street median estimate of $1,152 million [1].

The investment bank noted robust momentum across Targa’s operations in the second half of 2025, with management expressing confidence in the company’s 2025 full-year guidance and 2026 trajectory. InvestingPro analysis reveals the company maintains a "GOOD" overall financial health score, with particularly strong profitability metrics. The company has also maintained dividend payments for 15 consecutive years, demonstrating consistent shareholder returns [1].

According to JPMorgan, Targa’s outlook has returned to pre-Liberation Day expectations as upstream companies resume previously paused drilling activities. The firm highlighted that Targa has not observed significant changes in producer activity and anticipates strong well completion expectations for July and August. With a market capitalization of $37 billion and analyst consensus strongly bullish at 1.43 (where 1 is Strong Buy), the market appears to share this optimistic outlook [1].

JPMorgan models a $620 million Gathering and Processing operating margin for Targa, accounting for sequential volume increases and quarter-over-quarter commodity headwinds. The firm noted that Permian volumes rebounded approximately 200 million cubic feet per day higher than the first quarter, which had been affected by weather challenges [1].

The firm views Targa’s resilient EBITDA growth as "materially underappreciated" and considers current stock prices as presenting a "highly compelling opportunity to capitalize on best-in-class operations" [1].

In other recent news, Targa Resources has been actively engaged in several financial and strategic developments. The company has priced a $1.5 billion senior notes offering, which includes $750 million in 4.900% Senior Notes due in 2030 and another $750 million in 5.650% Senior Notes due in 2036. This capital raise is intended to redeem existing notes and support general corporate purposes [1].

RBC Capital has raised its price target for Targa Resources to $205 from $191, citing strong fundamentals and the company’s ability to return cash to shareholders [1]. Stifel has adjusted its price target for Targa Resources to $216 from $229, maintaining a Buy rating, following the company’s first-quarter earnings that met expectations [1]. Goldman Sachs, however, has lowered its price target to $188 from $194, while still recommending a Buy rating, due to a reduced outlook for the Permian Basin [2]. TD Cowen initiated coverage on Targa Resources with a Hold rating and a price target of $192, noting the company’s strong growth outlook but limited upside potential at current stock levels [2].

These recent developments reflect a mix of strategic financial maneuvers and varied analyst perspectives on Targa Resources’ future performance. The company continues to emphasize its operational stability and growth potential, particularly in natural gas production. Despite differing views on price targets, analysts generally acknowledge Targa’s robust operational framework and strategic initiatives.

References:
[1] https://au.investing.com/news/analyst-ratings/targa-resources-stock-price-target-raised-to-209-from-189-at-jpmorgan-93CH-3921759
[2] https://za.investing.com/news/analyst-ratings/goldman-sachs-lowers-targa-resources-stock-price-target-on-reduced-permian-outlook-93CH-3784502