RBC keeps Buy rating for Targa Resources stock at USD 338 target

Published on 10/08/2026 at 16:48 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

RBC kept its Buy rating on October 7, 2026. Targa Resources stock cost EUR 257.00 on October 8, 2026 versus EUR 255.35, plus 0.65 percent.

Key points in brief

RBC Capital reiterated a Buy rating and a USD 338.00 price target for Targa Resources on October 7, 2026.
Targa Resources reported USD 4.44 billion in second-quarter 2026 revenue, while earnings per share reached USD 3.54 versus USD 2.83 consensus.
The stock was at EUR 257.00 at Lang & Schwarz on October 8, 2026, plus 0.65 percent versus the EUR 255.35 prior close.
Targa Resources is scheduled to report third-quarter 2026 results on November 4, 2026.

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Targa Resources (ISIN US87612G1013) was covered by RBC Capital with a reiterated Buy rating and a USD 338.00 price target on October 7, 2026, according to Markets Insider. The note keeps the analyst case constructive while the latest company figures show both growth and capital intensity.

Second-quarter earnings set the base

Targa Resources generated USD 4.44 billion in revenue in the second quarter of 2026, according to Quartr. Revenue increased 4.00 percent year over year, while net income reached USD 764.6 million, an increase of 22.00 percent from the prior-year quarter.

Adjusted earnings before interest, taxes, depreciation and amortization rose 38.00 percent year over year to USD 1.603 billion in the second quarter, and adjusted cash flow from operations increased 47.00 percent to USD 1.371 billion. The operating picture therefore improved faster than revenue, an important distinction for a midstream company expanding its asset base.

What does the growth plan require?

Quartr reported that Targa expects full-year 2026 adjusted earnings before interest, taxes, depreciation and amortization toward the top end of its USD 5.7 billion to USD 5.9 billion guidance range. The same summary lists USD 4.5 billion of estimated net growth capital for 2026 and a fee-based margin expected to exceed 90.00 percent.

That combination explains the tension in the valuation discussion: the second-quarter earnings profile is accelerating, but the expansion program also requires substantial investment. Targa repurchased USD 80 million of common stock at an average price of USD 259.93 per share during the quarter, while its quarterly dividend rose 25.00 percent year over year to USD 1.25 per share.

Three dated signals shape the story

On August 6, 2026, Targa reported second-quarter earnings per share of USD 3.54 against a consensus estimate of USD 2.83, according to MarketBeat. On September 18, 2026, TD Cowen upgraded the stock from Hold to Buy and raised its target from USD 275.00 to USD 350.00, as reported by Marketscreener. On October 7, 2026, RBC reiterated Buy with a USD 338.00 target, according to Markets Insider.

Next report is November 4

Targa Resources is scheduled to release third-quarter 2026 results on November 4, 2026, before the market opens, with an earnings call at 11:00 a.m. ET, according to MarketBeat. The next report will test whether the Permian volume growth and margin expansion described for the second quarter continued into the third quarter.

Stock holds above the prior close

Targa Resources was trading at EUR 257.00 at Lang & Schwarz on October 8, 2026 at 4:38 p.m. CEST, plus 0.65 percent versus the prior close of EUR 255.35. On the NYSE, the company was last quoted at USD 289.27 on October 8, 2026 at 10:47 a.m. ET, while its 52-week range was USD 144.14 to USD 307.94 and its market capitalization was USD 62.1 billion.

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