TRGP Should I Buy
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Targa Resources Corp (TRGP) is a good buy for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. The company demonstrates strong growth potential, supported by bullish analyst ratings, positive financial performance, and a favorable long-term outlook in the Permian Basin. Despite a slight pre-market price increase, the stock remains attractive for long-term investment due to its robust growth trajectory and expanding free cash flow.
The stock is showing bullish momentum with moving averages in a positive alignment (SMA_5 > SMA_20 > SMA_200). However, the MACD is slightly negative (-0.195) but contracting, suggesting potential stabilization. RSI at 75.133 is neutral but leaning towards overbought territory. Key resistance levels are at R1: 249.648 and R2: 254.094, with the pre-market price near R1, indicating potential for further upside.
Analysts have consistently raised price targets, with the latest targets ranging from $243 to $298, reflecting confidence in the company's growth initiatives.
The company is expanding its processing capacity with 8 new plants planned over the next 2 years, expected to drive significant EBITDA growth.
Financials show strong YoY growth in Net Income (+71.57%), EPS (+74.31%), and Gross Margin (+26.88%).
Revenue dropped by -9.22% YoY in Q4 2025, which could raise concerns about top-line growth.
The MACD is slightly negative, indicating potential short-term caution.
No significant hedge fund or insider trading activity, which might suggest a lack of immediate institutional conviction.
In Q4 2025, Targa Resources reported a 71.57% YoY increase in Net Income to $542 million, a 74.31% increase in EPS to 2.51, and a 26.88% increase in Gross Margin to 34.32%. However, revenue declined by -9.22% YoY to $4.11 billion. The company's profitability metrics are strong, and its growth capex initiatives are expected to drive future performance.
Analysts are overwhelmingly bullish on TRGP, with multiple firms raising price targets recently. The highest target is $298 (Morgan Stanley), and the lowest is $220 (TD Cowen). Analysts highlight the company's strong positioning in the Permian Basin, robust returns on capital, and growth capex initiatives as key drivers for long-term growth.
