TD Cowen upgrades Targa Resources stock to Buy

Published on 10/07/2026 at 15:52 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Adjusted EBITDA rose 38.00 percent to USD 1.60 billion in the second quarter. Targa Resources stock costs EUR 254.70 on October 7, 2026.

TRGP, US87612G1013, Illustration mit AI erstellt.

Targa Resources (ISIN US87612G1013) was trading at EUR 254.70 at Lang and Schwarz on October 7, 2026 at 3:38 p.m. CEST. On September 18, 2026, TD Cowen upgraded the stock from Hold to Buy and raised its price target from USD 275.00 to USD 350.00, according to Investing.com. The upgrade puts Permian growth and execution against a higher valuation at the center of the investment debate.

Second-quarter EBITDA rises 38.00 percent

Targa reported adjusted EBITDA of USD 1.60 billion in the second quarter of 2026, up 38.00 percent from the same quarter of 2025 and 14.00 percent from the first quarter of 2026. The figure is earnings before interest, taxes, depreciation and amortization, adjusted for specified items. Quartr reported that net income reached USD 764.60 million, up 22.00 percent year over year, while revenue rose 4.00 percent to USD 4.44 billion.

The operating comparison matters because the earnings gain outpaced revenue growth. That spread points to stronger margins, optimization activity and higher Permian volumes rather than simple top-line expansion.

Guidance reaches USD 5.90 billion

Management expects full-year 2026 adjusted EBITDA toward the top end of a USD 5.70 billion to USD 5.90 billion range, according to Quartr. The same summary puts 2026 net growth capital at USD 4.50 billion and maintenance capital at USD 250.00 million.

The growth plan therefore carries a clear capital burden. Targa is funding processing plants and fractionation capacity through 2028, while its fee-based margin is expected to exceed 90.00 percent, creating a direct link between infrastructure spending and future cash generation.

Analyst optimism meets valuation

TD Cowen expects Targa's valuation multiple to contract from 13.00 times in 2026 to 8.60 times in 2030, while its free cash flow yield is projected to rise from 6.00 percent in 2026 to more than 10.00 percent from 2028, Investing.com reported. The thesis depends on new Permian plants arriving on schedule and on the company converting higher throughput into durable cash flow.

On the primary exchange, Targa Resources trades on the NYSE in USD. Its market capitalization was USD 60.5 billion and its 52-week range was USD 144.14 to USD 307.94 as of October 7, 2026.

Stock trades below its yearly high

Targa Resources was trading at EUR 254.70 at Lang and Schwarz on October 7, 2026 at 3:38 p.m. CEST. The further course of trading is shown by the continuously updated real-time quote of Targa Resources stock.