European Investor
18 Aug 2026, 18:03
Targa Resources Stock Jumps 7.3% as Morgan Stanley and Jefferies Raise Price Targets
Targa Resources (NYSE: TRGP) shares are up 7.3% after two Wall Street firms raised their price targets on the midstream energy company, adding to positive sentiment around the stock.
Morgan Stanley analyst Robert Kad raised the firm's price target on Targa Resources from $333 to $343 while maintaining an Overweight rating. Jefferies analyst Julien Dumoulin-Smith was even more bullish, increasing the target from $324 to $345 and maintaining a Buy rating.
With Targa trading around $298.21, the new targets imply upside of approximately 15% to 16%.
Why the Analyst Updates Are Positive for Targa Resources
The simultaneous target increases from two major investment banks provide a constructive signal for TRGP. Both firms already had bullish ratings and chose to raise their valuation expectations rather than simply maintaining their previous targets.
The revisions come as Targa Resources occupies a strong position in the U.S. midstream energy sector. The company owns and operates extensive natural gas and natural gas liquids infrastructure, with particularly important exposure to the Permian Basin.
That positioning is significant because rising U.S. natural gas production, LNG export demand and growing electricity requirements — including power demand associated with data centers and AI infrastructure — can increase the need for gathering, processing and transportation infrastructure.
Energy Sector Strength Adds Support
Targa's 7.3% gain also comes against a supportive backdrop for parts of the energy sector. Higher oil and natural gas prices and geopolitical uncertainty can improve investor sentiment toward energy infrastructure companies, although Targa's fee-based midstream business means its earnings exposure to commodity prices is generally less direct than that of oil and gas producers.
The two analyst revisions reinforce the bullish case. Morgan Stanley's $343 target represents about 15% upside from the $298.21 price shown in the report, while Jefferies' $345 target implies nearly 16% upside.
With both firms retaining positive ratings, today's upgrades suggest analysts continue to see room for Targa Resources to benefit from expanding U.S. energy infrastructure requirements and its strategically important position in natural gas and NGL markets.
Targa Resources (NYSE: TRGP) shares are up 7.3% after two Wall Street firms raised their price targets on the midstream energy company, adding to positive sentiment around the stock.
Morgan Stanley analyst Robert Kad raised the firm's price target on Targa Resources from $333 to $343 while maintaining an Overweight rating. Jefferies analyst Julien Dumoulin-Smith was even more bullish, increasing the target from $324 to $345 and maintaining a Buy rating.
With Targa trading around $298.21, the new targets imply upside of approximately 15% to 16%.
Why the Analyst Updates Are Positive for Targa Resources
The simultaneous target increases from two major investment banks provide a constructive signal for TRGP. Both firms already had bullish ratings and chose to raise their valuation expectations rather than simply maintaining their previous targets.
The revisions come as Targa Resources occupies a strong position in the U.S. midstream energy sector. The company owns and operates extensive natural gas and natural gas liquids infrastructure, with particularly important exposure to the Permian Basin.
That positioning is significant because rising U.S. natural gas production, LNG export demand and growing electricity requirements — including power demand associated with data centers and AI infrastructure — can increase the need for gathering, processing and transportation infrastructure.
Energy Sector Strength Adds Support
Targa's 7.3% gain also comes against a supportive backdrop for parts of the energy sector. Higher oil and natural gas prices and geopolitical uncertainty can improve investor sentiment toward energy infrastructure companies, although Targa's fee-based midstream business means its earnings exposure to commodity prices is generally less direct than that of oil and gas producers.
The two analyst revisions reinforce the bullish case. Morgan Stanley's $343 target represents about 15% upside from the $298.21 price shown in the report, while Jefferies' $345 target implies nearly 16% upside.
With both firms retaining positive ratings, today's upgrades suggest analysts continue to see room for Targa Resources to benefit from expanding U.S. energy infrastructure requirements and its strategically important position in natural gas and NGL markets.
