TD Cowen Upgrades Targa Resources to Buy with Raised Price Target
Targa Resources (TRGP) has outperformed the market this year, gaining over 56% since January 2026. This growth is largely attributed to a recent 20-year fee-based agreement signed with ExxonMobil in August 2026. On September 18, TD Cowen upgraded TRGP from 'Hold' to 'Buy', raising its price target from $275 to $350 — implying nearly 20% upside and surpassing the stock's recent high of just under $308. The upgrade is based on Targa’s expected growth in Permian Basin wet gas production, peer-leading EBITDA expansion, and an improving free cash flow yield. TD Cowen forecasts a rise from 6% to over 10% by 2028 compared to peers' projected 8.5%. The firm also highlighted the company's new processing plants in the Permian Delaware as key contributors. Despite strong earnings, including record Q2 adjusted EBITDA of $1.6 billion and a raised full-year guidance range for 2026, Targa faces challenges from high capital expenditures and execution risks on ongoing projects.
Topics: ExxonMobil Partnership Permian Basin Targa Resources TD Cowen