Core Viewpoint - Targa Resources, Inc. (TRGP) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [4]. Implications of the Upgrade - The upgrade for Targa Resources indicates a positive outlook on its earnings, which is expected to create buying pressure and potentially increase the stock price [3][5]. - Rising earnings estimates suggest an improvement in the company's underlying business, which should be recognized by investors, leading to a higher stock price [5]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Targa Resources is projected to earn $7.97 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 7.7% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - Targa Resources' upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Viewpoint - Targa Resources Corp. is identified as a strong investment opportunity by hedge funds, with analysts projecting positive momentum and growth in the natural gas and NGL sectors [1][2]. Group 1: Analyst Insights - JPMorgan analyst Jeremy Tonet raised the price target for Targa Resources stock to $215 from $214, maintaining an "Overweight" rating, indicating confidence in the company's performance [1]. - The firm anticipates that Targa's momentum in the second half of 2025 is becoming evident, suggesting a positive outlook for the company's growth [1]. Group 2: Growth Projects - Targa Resources is advancing new organic growth projects to enhance NGL and natural gas production in the Permian Basin, addressing customer infrastructure needs [1]. - The company is constructing the Speedway NGL Pipeline to support the transportation of approximately 1 million barrels per day of natural gas liquids [2]. - Additionally, Targa is developing the Yeti gas processing plant, expected to process 275 million cubic feet per day, with an anticipated operational start in Q3 2027 [2]. Group 3: Market Position and Strategy - Targa Resources controls 90% of the fractionation capacity in Mont Belvieu, the largest hub for NGLs globally, benefiting from cost advantages and high entry barriers [3]. - Approximately 90% of Targa's earnings are generated through multi-year fee-based contracts, providing stability against market fluctuations [3]. - Despite concerns regarding Permian oil production growth impacting share prices, Targa is viewed as well-positioned for growth even in a slowing market [3].

Core Insights - Targa Resources Corp. is a significant player in the midstream energy sector, focusing on the collection, treatment, transportation, storage, and export of natural gas and natural gas liquids [1] - The company has a market capitalization of $32.5 billion and operates primarily in the Gulf Coast and other high-production regions across North America [2] Financial Performance - Analysts project Targa's profit for the third quarter to grow by 26.9% year-over-year to $2.22 per diluted share, with expectations for the current fiscal year profit to increase by 38.9% to $7.97 per diluted share and further rise by 23% to $9.80 in fiscal 2026 [3] - Targa has a mixed record of meeting consensus bottom-line estimates, having beaten estimates in two of the last four quarters while missing in the other two [4] Stock Performance - Over the past 52 weeks, Targa's stock has declined by 10%, and 18% year-to-date, significantly underperforming the S&P 500 index, which rose by 13.5% and 12.7% respectively during the same periods [5] - The stock has faced pressure due to shifting commodity prices and broader economic conditions, alongside concerns regarding the growth rate of Permian oil output [6] Strategic Investments - Targa is investing $3.30 billion in the Permian Basin, which includes the construction of the 500-mile Speedway NGL Pipeline and new gas processing plants, expected to be operational by 2027-2028, aimed at enhancing infrastructure and meeting customer needs [7]

Core Points - Targa Resources Corp. declared a quarterly cash dividend of $1.00 per common share for Q3 2025, equating to an annualized rate of $4.00 per share, payable on November 17, 2025, to shareholders of record as of October 31, 2025 [1] - The company will report its Q3 2025 financial results on November 5, 2025, before market opening, followed by a live webcast at 11:00 a.m. Eastern Time to discuss the results [2][3] - A replay of the webcast will be available approximately two hours after the event, along with a quarterly earnings supplement presentation and updated investor presentation [4] Company Overview - Targa Resources Corp. is a leading provider of midstream services and one of the largest independent infrastructure companies in North America, owning and operating a diversified portfolio of infrastructure assets critical for energy delivery [5] - The company's assets connect natural gas and natural gas liquids (NGLs) to both domestic and international markets, catering to the growing demand for cleaner fuels and feedstocks [5] - Targa is a FORTUNE 500 company and is included in the S&P 500 [6]

Core Insights - Oakmark Global Fund underperformed the MSCI World Index in the third quarter [1] Fund Activity - The fund initiated new positions in Salesforce, Dassault Systèmes, Hexagon, and Targa Resources during the quarter [1] - The fund exited positions in Amazon.com, Centene, and St. James's Place [1]

Group 1 - Oakmark Fund underperformed the S&P 500 Index in Q3 2025 but has outperformed the benchmark since inception [1] - Financials and energy sectors were the largest contributors to the fund's performance, while health care and consumer staples detracted [1] - Targa Resources Corp. (NYSE:TRGP) was highlighted as a significant stock in the fund's portfolio [2][3] Group 2 - Targa Resources Corp. has a one-month return of -3.05% and a 52-week loss of 2.69%, with a market capitalization of $34.71 billion [2] - Targa is a leading midstream natural gas and NGL company, controlling 90% of the fractionation capacity in Mont Belvieu, benefiting from cost advantages and barriers to entry [3] - Approximately 90% of Targa's earnings come from multi-year fee-based arrangements, providing stability against market fluctuations [3] Group 3 - Targa Resources Corp. is not among the 30 most popular stocks among hedge funds, with 48 hedge fund portfolios holding the stock at the end of Q2 2025 [4] - There is a belief that certain AI stocks may offer greater upside potential compared to Targa Resources Corp. [4]

Core Viewpoint - Targa Resources Corp. (NYSE:TRGP) experienced a significant decline in share price, attributed to a reduction in price target by BofA and falling oil prices, despite ongoing growth initiatives in the Permian basin [1][2]. Group 1: Stock Performance - The share price of Targa Resources Corp. fell by 6.83% from September 26 to October 3, 2025, ranking it among the energy stocks that lost the most during that week [1]. - BofA reduced the stock's price target from $220 to $200 while maintaining a 'Buy' rating, indicating a mixed sentiment towards the stock [2]. Group 2: Company Initiatives - Targa Resources announced plans to construct the Speedway NGL Pipeline and a new gas processing plant, with an estimated cost of $1.6 billion, to support its production growth in the Permian basin [3]. - The company will also proceed with the construction of the Yeti gas processing plant, which has a capacity of 275 million cubic feet per day, in the Permian Delaware Basin [3].

Core Insights - Targa Resources Corp. (TRGP) has announced significant investments in its Permian Basin operations, including a new NGL pipeline and natural gas infrastructure [1][2] - The Speedway NGL Pipeline will have an initial capacity of 500,000 barrels per day, with potential future expansions to double this capacity, costing $1.6 billion and expected to be operational by Q3 2027 [1] - A new natural gas processing plant, the Yeti plant, will provide 275 million cubic feet per day processing capacity, aimed at transporting NGLs to the fractionation and storage complex in Mont Belvieu, Texas [1] Investment and Growth - The Buffalo Run project will enhance connections between Delaware and Midland natural gas assets, utilizing a mix of new and existing pipelines, expected to be completed by early 2028 [2] - TRGP's expected capital expenditures for 2025 have increased from $2.85-$3.05 billion to $3.3 billion due to these projects [2] - The company has experienced meaningful volume growth in its Permian Basin assets, with a robust outlook for continued growth in 2026 [2] Market Position - TRGP is recognized as a top-10 holding in the Alerian Energy Infrastructure ETF (ENFR), which tracks the Alerian Midstream Energy Select Index (AMEI) yielding 5.3% as of October 1 [2]

Core Insights - Targa Resources Corp. (NYSE:TRGP) is recognized as a leading midstream energy company with a robust infrastructure connecting North American natural gas and natural gas liquids to key markets, providing stable fee-based revenue streams for long-term investors [1][4] Group 1: Recent Developments - In September 2025, Targa launched the Forza Pipeline Project in the Delaware Basin, a 36-mile pipeline capable of transporting up to 750,000 dekatherms per day, enhancing its capacity to meet rising demand for cleaner fuel infrastructure [2] - Approximately 90% of Targa's earnings are derived from multi-year, fee-based contracts, which protect the company from commodity price fluctuations [4] Group 2: Market Position and Growth Potential - BMO Capital initiated a "Buy" rating for Targa, highlighting its strong asset base and strategic positioning in the Delaware and Midland basins, making it a top stock in the midstream energy sector [3] - Targa's controlling position in the Mont Belvieu fractionation hub, along with strong insider ownership and improving EBIT margins, bolsters its long-term growth outlook [4]

Core Viewpoint - Targa Resources Corp. is advancing several organic growth projects to enhance NGL and natural gas production in the Permian Basin, addressing customer infrastructure needs [1][2][3]. Group 1: New Projects - Targa plans to construct the Speedway NGL Pipeline, a ~500-mile pipeline with an initial capacity of ~500 MBbl/d, expandable to 1,000 MBbl/d, expected to be operational by Q3 2027 at an estimated cost of $1.6 billion [2]. - The company is also building the Yeti gas processing plant with a capacity of 275 MMcf/d, expected to be in service by Q3 2027, as part of five new gas processing plants in the Permian with a total capacity of 1.4 Bcf/d [3]. - A new 35-mile natural gas pipeline and a 55-mile conversion of an existing pipeline into natural gas service, collectively known as Buffalo Run, will enhance connectivity across Targa's plants and is expected to be completed by early 2028 [4]. Group 2: Financial Outlook - Targa estimates total net growth capital expenditures for 2025 to be around $3.3 billion, which includes costs for the Speedway pipeline and long-lead items for the Yeti plant [5]. - The company anticipates significant volume growth in 2026, supported by ongoing projects and a favorable industry trend of rising gas-to-oil ratios in the Permian Basin [6]. Group 3: Company Overview - Targa Resources Corp. is a leading midstream service provider and one of the largest independent infrastructure companies in North America, focusing on the efficient delivery of energy [8]. - The company operates a diversified portfolio of assets that connect natural gas and NGLs to both domestic and international markets, catering to the growing demand for cleaner fuels [8].