BMO Capital Initiates Buy Rating on Targa Resources (TRGP) Stock

Targa Resources Corp. (NYSE:TRGP) is one of the Most Promising Energy Stocks According to Wall Street Analysts. On September 18, Ameet Thakkar, an analyst from BMO Capital, initiated a “Buy” rating on the company’s stock with a price target of $185. The analyst’s rating is backed by a combination of factors demonstrating Targa Resources Corp. (NYSE:TRGP)’s growth potential and value. As per the analyst, the company remains well-placed to thrive even in the challenging Permian rig environment, with expectations for its volumes to exceed the basin average.

Furthermore, this growth potential is helped by Targa Resources Corp. (NYSE:TRGP)’s current trading valuation, which offers a significant discount versus the S&P 500 and its C-Corp peers, making the company an attractive investment opportunity, opines the firm’s analyst. Additionally, Targa Resources Corp. (NYSE:TRGP)’s strong asset portfolio, mainly its extensive midstream infrastructure in the Delaware and Midland basins, offers a competitive edge, added Thakkar.

Oakmark Funds, advised by Harris Associates, released its Q2 2025 investor letter. Here is what the fund said:

“Targa Resources Corp. (NYSE:TRGP) is a leading midstream natural gas and natural gas liquids (NGL) company. Targa is a part of a group that controls 90% of the fractionation capacity in the largest hub for NGLs in the world, known as Mont Belvieu. Thanks to the region’s unique topography and proximity to the Gulf Coast, Targa benefits from meaningful cost advantages and significant barriers to entry. We like that Targa generates ~90% of its earnings through multi-year fee-based arrangements with its customer base, which provides protection against oversupply or re contracting. Uncertainty around Permian oil pro duction growth has recently weighed on share price. However, in our view, Targa remains well-po sitioned to grow, even if the Permian slows dramatically. We were happy to purchase shares at a discount to peers based on normalized earnings power and our estimate of intrinsic value.”

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Disclosure: None. This article is originally published at Insider Monkey.