Valued at a market cap of $36.6 billion, Targa Resources Corp. (TRGP) is a leading midstream energy infrastructure company headquartered in Houston, Texas. Founded in 2005, Targa specializes in the gathering, compressing, treating, processing, transporting, storing, and selling of natural gas and natural gas liquids (NGLs). 

Shares of this energy company have significantly surpassed the broader market over the past 52 weeks. Targa Resources has rallied 44% over this time frame, while the broader S&P 500 Index ($SPX) has gained 11.5%. However, on a YTD basis, the stock is down 6.8%, compared to SPX’s marginal rise. 

Narrowing the focus, TRGP’s outperformance looks even more pronounced when compared to the Energy Select Sector SPDR Fund’s (XLE) 8.8% drop over the past 52 weeks. 

On May 1, Targa shares plunged 5% after reporting its Q1 2025 earnings, highlighting a record adjusted EBITDA of $1.2 billion, a 22% increase year-over-year, driven by contributions from the Badlands transaction and enhanced marketing margins. Total revenue remained steady at approximately $4.6 billion, with a slight decrease in commodity sales offset by increased fees from midstream services.

In terms of shareholder returns, Targa increased its quarterly dividend by 33% year-over-year to $1 per share and repurchased $214 million of common shares through April 2025. The company reaffirmed its full-year 2025 adjusted EBITDA guidance of $4.65 to $4.85 billion, anticipating growth in the latter half of the year driven by strategic capital projects and expansions in the Permian Basin. 

For the fiscal year, which ends in December, analysts expect Targa's EPS to grow 39.2% year over year to $7.99. The company’s earnings surprise history is mixed. It surpassed the Wall Street estimates in two of the last four quarters while missing on two other occasions. 

Among the 18 analysts covering the stock, the consensus rating is a “Strong Buy,” which is based on 17 “Strong Buy,” and one “Moderate Buy” rating.

This configuration is slightly less bullish than a month ago, with 18 analysts suggesting a “Strong Buy.” 

On May 8, RBC Capital analyst Elvira Scotto reiterated an “Outperform” rating on Targa Resources, while adjusting the price target downward from $199 to $191, signaling continued confidence in the stock’s performance despite a slightly tempered valuation outlook.

The mean price target of $212.84 represents a 27.9% upside from Targa’s current price levels, while the Street-high price target of $259 suggests an upside potential of 55.6%.