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 stock has strong growth potential, supported by positive analyst ratings, increasing dividends, and robust financial performance. Despite neutral technical indicators, the company's strategic positioning in the midstream energy sector and its ability to capitalize on elevated commodity prices make it a solid long-term investment.
The MACD histogram is negative (-1.801) but contracting, indicating a potential shift in momentum. RSI is neutral at 38.119, and moving averages are converging, suggesting no clear trend. The stock is trading near its support level (S1: 235.787), with resistance at R1: 251.273. Overall, the technical indicators are neutral.
Analysts have consistently raised price targets, with the highest target at $327, reflecting strong confidence in the company's growth potential.
The company announced a 25% increase in its quarterly dividend, signaling improved profitability and shareholder returns.
Targa's strategic projects, including new plants and increased processing capacity, position it well for long-term growth.
Elevated commodity prices and geopolitical events, such as the U.S. Navy's blockade on the Strait of Hormuz, provide a favorable macroeconomic backdrop for energy stocks.
Technical indicators do not show a strong bullish trend, with MACD and RSI remaining neutral.
The stock has a 50% chance of declining by -4.8% in the next month based on historical candlestick patterns.
In Q4 2025, Targa Resources reported a revenue decline of -9.22% YoY to $4.11 billion. However, net income increased significantly by 71.57% YoY to $542 million, and EPS rose by 74.31% YoY to 2.51. Gross margin also improved by 26.88% YoY to 34.32%, indicating strong profitability and operational efficiency.
Analysts are overwhelmingly positive on TRGP, with multiple firms raising price targets recently. The highest price target is $327 (Morgan Stanley), and the lowest is $249 (Scotiabank). Analysts highlight the company's strong positioning in the Permian Basin, robust growth projects, and ability to navigate commodity price fluctuations.
