Scotiabank Raises Price Target for Targa Resources (NYSE: TRGP) Amid Strong Outlook

• Scotiabank increased its price target for Targa Resources despite a Q1 earnings miss.
• Targa Resources reported significant year-over-year growth in earnings, net income, and adjusted EBITDA.
• The company projects a strong future outlook, raising its full-year 2026 adjusted EBITDA forecast due to operational growth and new infrastructure.

An analyst at Scotiabank recently increased the price target for Targa Resources (NYSE: TRGP) to $257.00 from a previous target of $249.00. Targa Resources, a leading midstream energy company, specializes in gathering, processing, and transporting natural gas and natural gas liquids through its extensive pipeline network, primarily across the United States.

Despite the analyst's optimism, Targa Resources missed its first-quarter earnings estimates. As highlighted by Zacks, the company reported quarterly earnings of $2.21 per share, which was below the consensus estimate of $2.55 per share. Revenues of $4.09 billion also fell short of analyst expectations by 19.64%.

However, the financial results show significant year-over-year growth. The reported earnings of $2.21 per share represent a substantial increase from the $0.91 per share earned in the same quarter last year. As highlighted by GlobeNewswire, Targa Resources also achieved a record net income of $480.00 million and a record adjusted EBITDA of $1.40 billion.

The company’s future outlook appears strong. As reported by Reuters, Targa Resources forecasts its current-year adjusted core profit to be above analyst expectations, driven by higher transport volumes. Following its strong performance, the company raised its full-year 2026 adjusted EBITDA forecast to a range of $5.70 billion to $5.90 billion.

This positive forecast is supported by robust operational growth, including record volumes in the Permian basin. Targa Resources also recently completed its new Falcon II and East Pembrook processing plants. These new facilities are expected to significantly increase the company's capacity and support its projected growth in volumes and earnings.