Targa Resources Set to Announce Strong Q3 Earnings Amid Stock Surge
Analysts Anticipate Higher Profits for Targa Resources as Stock Performance Shines
Targa Resources Corp. (TRGP), headquartered in Houston, Texas, manages a variety of midstream infrastructure assets across North America. With a market capitalization of $36.8 billion, the company operates through its Gathering and Processing as well as Logistics and Transportation divisions. Earnings for the third quarter are expected to be announced before the market opens on Tuesday, November 5.
As the earnings report approaches, analysts predict that Targa Resources will report a profit of $1.57 per share. This figure marks a significant increase of 61.9% compared to the $0.97 per share reported during the same period last year. It’s worth noting that Targa has missed Wall Street’s earnings per share (EPS) expectations in three out of the last four quarters, achieving its EPS projections only once. In the last reported quarter, however, it exceeded the consensus estimate by 9.9%.
Looking ahead to fiscal 2024, analysts expect Targa Resources to generate an EPS of $5.92, reflecting a robust increase of 61.8% from the $3.66 reported in fiscal 2023.
Year-to-date, TRGP stock has surged by 94.1%, significantly outperforming the S&P 500 Index’s gains of 21.8% and the Energy Select Sector SPDR Fund’s (XLE) returns of 7.1% during the same period.
The momentum behind Targa Resources in 2024 appears strong, bolstered by its extensive infrastructure and strategically located assets that provide a notable competitive edge.
On October 22, Targa Resources shares rose by more than 2% after Raymond James increased its price target for the stock from $156 to $185.
Currently, the consensus among analysts is very optimistic, classifying Targa Resources as a “Strong Buy.” Out of the 19 analysts monitoring the stock, 17 recommend a “Strong Buy” while two suggest a “Moderate Buy.”
While TRGP shares trade above the average target price of $164.65, analysts note that the highest projected target of $190 suggests a potential upside of up to 12.7% from current market prices.
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On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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