Stock Analysis | Targa Resources Outlook - Bullish Technical Signals Emerge Amid Mixed Analyst Opinions

Market Snapshot

Takeaway: Targa Resources (TRGP) is showing moderate attention from technical indicators, which are currently neutral but with a slight bullish bias. The stock is up 4.17% recently, matching the optimistic market expectations.

News Highlights

Recent developments in the oil and gas sector are shaping investor sentiment:

• Colombia plans an 8% jump in oil and gas investment in 2025 to reach $4.68 billion. This reflects global industry growth and may indirectly support TRGP’s operations.
• President Tinubu of Nigeria announced a new Executive Order to reduce costs and boost efficiency in oil and gas operations, potentially attracting more investment into the sector.
• Private equity activity in fossil fuels is on the rise, with $18.54 billion in exits recorded in the first half of 2025. This signals strong investor interest in energy infrastructure, which TRGP benefits from.

Analyst Views & Fundamentals

Three analysts from Mizuho, Scotiabank, and RBC Capital have rated Targa Resources recently, with a simple average rating score of 4.33 and a performance-weighted rating of 4.04. The ratings are consistent, with all three calling for a "Buy" or "Strong Buy." However, the historical performance of these analysts varies significantly.

• Brandon Bingham (Scotiabank) has a 66.7% win rate and a 1.10% average return, making him the most reliable in this group.
• Elvira Scotto (RBC Capital) has a 42.9% win rate and a 0.84% average return.
• Gabriel Moreen (Mizuho) lags with a 25.0% win rate and a -3.91% average return.

Despite these ratings, the price is rising, aligning with the market's optimistic outlook.

Fundamental Factors

• Revenue-MV: 0.48 (Score: 3) – Moderately positive.
• Net profit attributable to parent company shareholders / Net profit (%): 90.41% (Score: 3) – Strong profitability.
• Inventory turnover ratio: 14.64 (Score: 1) – Suggests high inventory turnover, but low model confidence.
• Net income-Revenue: 0.46 (Score: 3) – Profitability relative to revenue is moderate.
• Profit-MV: 0.25 (Score: 1) – Low model confidence in this factor.
• Non-current assets / Total assets (%): 90.61% (Score: 1) – Indicates high long-term assets but low model confidence.
• Fixed assets turnover ratio: 0.48 (Score: 1) – Low model confidence in fixed asset efficiency.
• Total assets turnover ratio: 0.38 (Score: 1) – Suggests slow asset turnover, with low model confidence.
• Asset-MV: 0.09 (Score: 3) – Suggests strong asset value.
• Inventory turnover days: 12.29 (Score: 0) – Indicates fast inventory turnover, but with very low model confidence.

Money-Flow Trends

Big money is showing mixed signals in Targa Resources’ stock. While small and medium-sized investors are pouring in, with 49.19% and 50.08% inflow ratios, respectively, large and extra-large investors are slightly more cautious, with inflow ratios of 50.04% and 47.62%.

The fund-flow score is 7.82, which is classified as "good", indicating that the overall flow is positive, though some larger players are showing hesitation.

Key Technical Signals

Targa Resources is showing moderate attention from technical indicators, with a technical score of 6.57 (internal diagnostic score). The overall trend is neutral with moderate volatility, and the technical indicators are not clearly pointing in a single direction.

Recent Technical Indicators by Date

• 2025-08-29: WR Overbought – Suggests potential overvaluation, but with a 6.6 internal diagnostic score.
• 2025-08-27: MACD Golden Cross – Suggests a potential bullish reversal, with a 6.21 score.
• 2025-08-19: WR Oversold – A strong 7.39 score, indicating potential buying opportunity.
• 2025-08-18: WR Oversold and MACD Death Cross – Suggests mixed signals with a 6.09 score.

The key insight from these indicators is that while bullish signals are dominant (1 bullish vs. 0 bearish), the market is in a volatile state and the direction is not clear enough.

Conclusion

Actionable Takeaway: Targa Resources appears to be in a moderately bullish technical setup with bullish indicators outweighing bearish ones, but the volatility and mixed signals suggest caution. Investors should monitor key technical levels and wait for a clearer breakout before making large moves. With strong analyst ratings and positive market flow, a pull-back could offer a compelling entry point.