Targa Resources price target lowered to $220 from $225 at Truist

Truist lowered the firm’s price target on Targa Resources (TRGP) to $220 from $225 but keeps a Buy rating on the shares. The recent updates by the majors suggest there is likely to be no slowdown in Permian production by some of the largest producers in the area, and Truist believes that Targa will benefit from the Permian upside given its likely continued role as the largest gatherer and processor in the Basin and its significant capital spend this year on large downstream projects, the analyst tells investors in a research note. Targa also has clear visibility to large projects “created out of necessity” by market demand, which provide additional legs of growth beyond its current system leverage, the firm adds.