Targa Resources Posts Strong Earnings Amid Weaker Revenues

Targa Resources shines with a notable earnings boost, outperforming the market. Despite weaker revenues, investor confidence grows as adjusted EBITDA expectations exceed prior forecasts.

Date: 15-02-2025

AI Rating: 7

Earnings Per Share (EPS)
Targa Resources Corp. has shown a significant improvement in its earnings, with EPS expected to grow by 73.8% year over year, reaching $6.36. This strong growth could positively influence investor sentiment and stock price, reflecting robust performance amidst challenging market conditions.

Revenue Growth
Despite delivering revenues of $3.9 billion that were weaker than expected and a 1.1% decline from the previous year, investors appear undeterred due to Targa’s strong earnings performance and expectations of higher adjusted EBITDA for 2024.

Market Performance
Over the past year, Targa's shares surged by 131.1%, indicating strong investor support compared to the broader S&P 500 gains of 23.5%. The outperformance against the Energy Select Sector SPDR Fund, which saw a 7.6% return, further solidifies Targa's favorable position in the market.

Barclays raised Targa's price target to $204, and the stock is trading slightly above this mark, suggesting optimistic future performance. Additionally, the consensus rating among analysts is a "Strong Buy," which includes 17 strong buy suggestions, further affirming the positive outlook.

The information provided in this report showcases a multifaceted view of Targa Resources’ performance. The strong earnings performance, coupled with the slight decline in revenues and optimistic future outlook, paints a picture of resilience that could positively affect stock prices in the upcoming period.

Stocks: TRGP