Targa Resources Corp. (TRGP) AI Stock Analysis

Targa Resources Corp. is a North American midstream energy company operating through Gathering and Processing, and Logistics and Transportation segments. Its business includes gathering, compressing, treating, processing, and transporting natural gas, as well as storage, fractionation, terminaling, and logistics services for natural gas liquids (NGL). Targa distributes wholesale propane, provides NGL balancing and transportation for Gulf Coast refiners and petrochemical companies, and manages an infrastructure network of approximately 28,400 miles of natural gas pipelines, 42 processing plants, and 34 storage wells with roughly 76 million barrels of gross capacity.

Targa Resources grew revenue at a five-year CAGR of 15.7% from FY2020 to FY2025. Annual revenue reached $21.68B in FY2022 before falling 28.0% to $15.62B in FY2023. Revenue subsequently rebounded to $16.63B in FY2024 and $17.14B in FY2025. Gross margin expanded steadily from 12.0% in FY2021 to 26.5% in FY2025, while operating margin rose from 10.4% to 20.1%. Net income grew from $71.2M in FY2021 to $1.84B in FY2025, lifting EPS from $1.96 to $9.65. For the trailing twelve months ended June 30, 2026, revenue stood at $16.74B, with quarterly revenue growing 4.2% year-over-year and quarterly earnings up 23.3%.

As of June 30, 2026, Targa held $132.3M in cash and short-term investments against $20.14B in total debt, resulting in net debt of $20.00B. Total assets stood at $28.52B, shareholders' equity was $3.66B, the current ratio was 0.77, and debt-to-equity was 5.51. In FY2025, operating cash flow reached $3.92B. Capital expenditures were $3.33B, resulting in free cash flow of $584.1M. Cash distributions included $818.3M in dividends paid and $641.8M in share buybacks, contributing to a 22.2% reduction in share count over five years.

TRGP trades at a trailing P/E of 28.2x and a forward P/E of 23.2x, compared to medians of 17.8x and 13.4x for its S&P 500 Energy peers. Its EV/EBITDA of 14.6x and price-to-sales of 3.8x also sit above the peer medians of 7.9x and 2.1x, respectively. The company's market cap is $63.24B and enterprise value is $80.13B. Over the past year, TRGP gained 105.9% versus 16.8% for the S&P 500, and its five-year return of 488.2% outpaced the benchmark return of 83.0%.

Targa pays a quarterly dividend with an annualized forward payout of $5.00 per share, yielding 1.70% at a payout ratio of 42.4%. The company has paid dividends for 16 consecutive years, and its dividend grew at an annualized rate of 25.4% over the past five years. Its last ex-dividend date is October 30, 2026.

Wall Street coverage includes 15 Strong Buy, 6 Buy, and 1 Hold ratings, with zero Sell or Strong Sell recommendations. The mean price target of $327.86 implies an 11.2% upside from the October 16, 2026 closing price of $294.90. For FY2026, analysts estimate EPS of $11.47, reflecting 27.5% growth, on revenue of $19.03B. For FY2027, five analysts project EPS of $12.02 and revenue of $23.93B. Targa beat EPS estimates in 3 of the last 4 quarters, with next earnings scheduled for November 5, 2026.

This page is an AI-written research summary of Targa Resources Corp. (TRGP). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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