Targa Resources price target raised to $172 from $153 at RBC Capital

RBC Capital analyst Elvira Scotto raised the firm’s price target on Targa Resources to $172 from $153 and keeps an Outperform rating on the shares as part of a broader research note previewing Q3 results for U.S. Midstream names. The firm is updating its models to reflect shifts in commodity prices, hurricane impact, and dry gas production weakness, adding that it expects most companies to maintain 2024 outlooks, the analyst tells investors in a research note. For the company, RBC states that while there will be some marginal commodity price headwinds, it sees the stock as “largely protected” on the downside with its fee and fee floor based contract structure and hedges in place. RBC further contends that Targa’s significant growth project backlog focused in the Permian notably outweighs the headwinds.