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Why Targa Resources Was Upgraded by Raymond James

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Targa Resources’ ratings update

Targa Resources (TRGP) is a midstream company involved in natural gas gathering, processing, transportation, and NGL (natural gas liquids) logistics. Raymond James has upgraded the company from “market perform” to “outperform,” which is equivalent to a “buy.”

TRGP now has “buy” ratings from 45.0% of analysts surveyed by Reuters. The remaining 55.0% rate it a “hold.”

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TRGP’s stock performance

Targa Resources (TRGP) ended 2016 on a strong note, rising 114.2% for the year. However, TRGP is still trading below levels prior to the rout in energy prices.

TRGP is currently trading at an analyst estimated forward EV-to-EBITDA[1. enterprise value to earnings before interest, tax, depreciation, and amortization] multiple of 13.3x. That’s higher than the peer median multiple of 10.2x.

TRGP is also trading above its average target price of $55.40. For an in-depth analysis of TRGP’s recent performance, please refer to Targa Resources Stock Doubled in 2016: What’s Ahead?

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