JPMorgan Lifts PT on Targa Resources (TRGP) Stock

Targa Resources Corp. (NYSE:TRGP) is one of the Best Beaten Down Stocks to Buy According to Hedge Funds. On October 7, JPMorgan analyst Jeremy Tonet lifted the price target on the company’s stock to $215 from $214, while keeping an “Overweight” rating as part of the Q3 earnings preview. As per the firm, Targa Resources Corp. (NYSE:TRGP)’s H2 2025 momentum is materializing. Elsewhere, the company announced new organic growth projects to support continuing NGL and natural gas production growth in the Permian Basin as well as to meet the infrastructure requirements of its customers.

JPMorgan Lifts PT on Targa Resources (TRGP) Stock

With around 1 million barrels per day of natural gas liquids that are being transported on Targa Resources Corp. (NYSE:TRGP)’s existing NGL transportation system, which includes volumes from the Pembrook II plant that came online during Q3 2025 in the Permian Midland and is running at high utilization, the company is going ahead with plans to construct the Speedway NGL Pipeline. Also, in a bid to accommodate future growth on Targa Resources Corp. (NYSE:TRGP)’s Permian Delaware system, it is also moving forward with the construction of its next 275 million cubic feet per day gas processing plant, the Yeti plant, which is anticipated to be in-service in Q3 2027.

Oakmark Funds, advised by Harris Associates, released its Q3 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 approximately 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 production growth has recently weighed on the share price. However, in our view, Targa remains well-positioned 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.