Stifel lowers Targa Resources price target to $335 citing higher capex expectations
Stifel reduced its price target for Targa Resources to $335 from $340, saying the company will spend more on capital projects. The analyst also expects third‑quarter 2026 EBITDA of about $1.6 billion, slightly above consensus. The revision follows recent 20‑year agreements with ExxonMobil and strong second‑quarter results that prompted other analysts to raise their targets. Barclays also lifted its target to $294 from $284.
Why it matters
The lower target suggests Stifel sees higher spending may pressure earnings, which could temper the stock’s recent rally. Investors will watch whether the higher capex forecast materialises, as it may affect near‑term cash flow and valuation multiples.
Key facts
- 1Stifel cut the price target to $335 from $340. marketscreener.com
- 2Barclays raised its price target to $294 from $284. marketscreener.com
- 3Stifel expects Q3 2026 EBITDA of approximately $1.6 billion, 0.9% above consensus. investing.com
- 4Stifel projects third‑quarter operating margin for the gathering and processing segment at about $765 million, 2.7% above consensus. investing.com
- 5Stifel forecasts logistics and transportation segment operating margin at roughly $812 million, 0.7% below consensus. investing.com
- 6Stifel estimates third‑quarter 2026 growth capex at roughly $1.4 billion, 5.1% above consensus, and expects fiscal‑year 2026 growth capex near the upper end of the guided range at about $5 billion, roughly 2.8% above consensus. investing.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.