BUZZ - TD Cowen upgrades Targa Resources to 'Buy' and raises target price

September 18 - ** TD Cowen upgraded pipeline operator Targa Resources (TRGP.N) from “Hold” to “Buy”

** Raised the target price from $275 to $350, representing about 22.8% upside compared to the latest closing price

** TD Cowen stated that TRGP is well positioned to benefit from the growth in wet gas output in the Permian Basin, which will support its expected industry-leading EBITDA growth

** Pointed out: “The increase in wet gas output is driven by the activity of producers in the Permian Basin and an expanding ratio of natural gas to crude oil”

** Added: “TRGP’s strong performance is due to its robust relationships with a growing base of producer customers,” and noted that as long-haul natural gas liquids pipeline construction spending is expected to moderate in 2028, the company’s free cash flow is poised to get a boost starting that year

** Out of 24 brokerages, 21 rate the stock as “Buy” or higher and 3 as “Hold”; the median target price is $314—data compiled by LSEG

** As of the previous trading day’s close, TRGP has risen 54.5% so far this year

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