Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 15 Jan, 26 | TRGP | Buy | USD 182.78 | USD 192.0 | USD 202.0 | 14 days | Closed |
11.98%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Targa Resources Corp., together with its subsidiary, Targa Resources Partners LP, owns, operates, acquires, and develops a portfolio of complementary domestic midstream infrastructure assets in North America. The company operates in two segments, Gathering and Processing, and Logistics and Transportation. It engages in gathering, compressing, treating, processing, transporting, and selling natural gas; storing, fractionating, treating, transporting, and selling natural gas liquids (NGL) and NGL products, including services to liquefied petroleum gas exporters; and gathering, storing, terminaling, purchasing, and selling crude oil. The company is also involved in the purchase and resale of NGL products; and wholesale of propane, as well as provision of related logistics services to multi-state retailers, independent retailers, and other end-users. In addition, it offers NGL balancing services; and transportation services to refineries and petrochemical companies in the Gulf Coast area, as well as purchases, markets, and resells natural gas. As of December 31, 2022, it leased and managed approximately 606 railcars; 122 tractors; and 6 vacuum trucks and 2 pressurized NGL barges. The company was incorporated in 2005 and is headquartered in Houston, Texas.
Logistics and Transportation Margin Growth: Adjusted operating margin in the L&T segment rose from USD 717.3 million in Q3 FY24 to USD 808.8 million in Q3 FY25
Adjusted EBITDA Expansion: Adjusted EBITDA increased from USD 1,069.7 million in Q3 FY24 to USD 1,274.8 million in Q3 FY25, representing a 19% yoy improvement
Increased Interest Expense: Net interest expense increased from USD 184.9 million in Q3 FY24 to USD 221.3 million in Q3 FY25
Operating Expense Inflation: Operating expenses rose from USD 301.0 million in Q3 FY24 to USD 333.5 million in Q3 FY25
Targa Resources Corp. remains exposed to execution risk on large-scale Permian and downstream expansion projects, as delays or cost overruns could pressure returns and elevate leverage during periods of commodity price volatility
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 182.78 | 163.0 | 192.0 | 202.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Financial Performance Momentum: During Q3 FY25, Targa Resources Corp. delivered a strong improvement in profitability, supported by higher throughput across its core asset base. Adjusted EBITDA increased to USD 1,274.8 million in Q3 FY25, compared with USD 1,069.7 million in Q3 FY24, reflecting a 19% year-on-year increase. Net income attributable to shareholders rose to USD 478.4 million in Q3 FY25 from USD 387.4 million in Q3 FY24, indicating improved operating leverage despite a higher cost environment.
Volume-Driven Margin Improvement: The Gathering and Processing (G&P) segment recorded higher adjusted operating margins, increasing to USD 873.7 million in Q3 FY25 from USD 788.0 million in Q3 FY24. This growth was driven primarily by a 9% increase in total natural gas inlet volumes, with Permian volumes rising 11% year-on-year, reflecting continued producer activity and incremental capacity additions. These gains were partially offset by higher operating expenses associated with multiple new plant additions across the Permian Basin.
Expansion Benefits with Cost Discipline: The Logistics and Transportation (L&T) segment benefited from record system utilization. Adjusted operating margin increased to USD 808.8 million in Q3 FY25, compared with USD 717.3 million in Q3 FY24, supported by a 23% increase in NGL pipeline transportation volumes and a 19% increase in fractionation volumes. Operating expenses remained broadly stable year-on-year, demonstrating effective cost control despite system expansions and higher throughput levels.
Record Volumes Across Key Systems: Operational metrics reflected strong system performance in Q3 FY25, with total NGL production increasing to 1,095 MBbl/d, up from 978 MBbl/d in Q3 FY24. Fractionation volumes rose to 1,134 MBbl/d from 954 MBbl/d, while NGL pipeline transportation volumes increased to 1,017 MBbl/d from 829 MBbl/d, highlighting improved utilization of recently commissioned infrastructure and downstream connectivity.
Elevated Costs Linked to Growth: Operating expenses increased to USD 333.5 million in Q3 FY25 from USD 301.0 million in Q3 FY24, primarily reflecting higher labor, maintenance, and tax costs associated with system expansions. Depreciation and amortization also rose to USD 383.5 million versus USD 355.4 million, consistent with the expanding asset base and recently commissioned projects.
Liquidity Maintained Amid Growth Investments: As of September 30, 2025, Targa reported total consolidated debt of USD 17.4 billion, while maintaining liquidity of approximately USD 2.3 billion. During Q3 FY25, the company repurchased USD 155.6 million of common stock and continued to prioritize shareholder distributions, supported by stable cash generation and access to capital markets.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Targa Resources, Inc (NYSE: TRGP) at the closing market price of USD 182.78, as on Jan 14, 2026.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Energy Industry: Oil & Gas Midstream
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| TRGP Targa Resources Inc |
-2.16 0.83% | 258.58 | 22.76 | 15.62 | 1.17 | 7.63 | 1.95 | 8.27 |
| EBBNF Enbridge Inc |
- -% | 24.60 | 11.01 | - | 1.47 | - | ||
| ENB Enbridge Inc |
0.08 0.15% | 54.55 | 32.07 | 17.33 | 1.67 | 1.73 | 2.98 | 10.28 |
| ET Energy Transfer LP |
- -% | 18.75 | 15.67 | 12.44 | 0.76 | 1.89 | 1.57 | 8.80 |
| EPD Enterprise Products Partners LP |
0.08 0.22% | 36.60 | 10.72 | 9.90 | 1.17 | 2.09 | 1.76 | 9.64 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on January 15, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
Copyright © 2026 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.
Australia