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Wall Street Analyst Ratings: TRGP’s ‘Buys’ and OKE ‘Holds’

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Targa Resources

Targa Resources (TRGP) has the most “buy” among the four peers we’re analyzing in this series. This difference could be due to the C-corp’s strong earnings growth potential and attractive valuation. 65.0% of analysts rate it as “buy,” and the remaining 35.0% rate it a “hold” as of March 26. The C-corp has seen two ratings updates in 2018 so far, from Goldman Sachs and Barclays. TRGP is currently trading below the low range ($50) of analysts’ target price. Its average target price of $54.4 implies a ~24% upside potential from the current price levels.

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DCP Midstream

57.1% of analysts rate DCP Midstream (DCP) a “hold,” 35.7% rate it a “buy,” and the remaining 7.1% rate it a “sell” as of March 26. DCP has seen three rating updates since the start of this year, including two upgrades and one downgrade. DCP’s average target price of $40.6 implies an ~18% upside potential from the current price.

ONEOK

ONEOK (OKE) has the most “hold” ratings among the four peers. 58.8% of analysts rate OKE a “hold,” 35.3% rate it a “hold,” and the remaining 5.9% rate it a “sell” as of March 26. OKE has seen five ratings upgrades in the first three months of this year. Most recently, Jefferies upgraded OKE from “hold” to “buy.” OKE’s average target price of $63.9 implies ~15% upside potential from the current price.

Western Gas Partners

55.6% of analysts surveyed by Reuters rate Western Gas Partners a “buy” as of March 26 while the remaining 44.4% rate it a “hold.” Barclays last downgraded WES to “equal-weight” from “overweight.” WES is currently trading significantly below the low range ($52) of analysts’ target price. Its average target price of $59.2 implies ~39% upside potential from the current price.

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