Targa Resources: The Price Is Not Always Right (Rating Downgrade)
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Targa Resources (TRGP) has experienced strong price performance, surpassing the 2026 price target. New growth projects may increase debt levels in 2025, and becoming a full taxpayer by 2027 could negatively impact free cash flow.
November 13, 2024 | 4:00 pm
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Targa Resources has surpassed its 2026 price target due to strong performance. However, new growth projects may increase debt in 2025, and becoming a full taxpayer by 2027 could negatively impact free cash flow.
The strong price performance of TRGP has pushed it beyond the 2026 price target, indicating potential overvaluation. The announcement of new growth projects suggests increased debt levels in 2025, which could affect financial stability. Additionally, becoming a full taxpayer by 2027 is expected to negatively impact free cash flow, potentially affecting investor sentiment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100