Morgan Stanley Raises Price Target for Targa Resources (NYSE:TRGP) Amid Strong Performance and Growth Plans

• Morgan Stanley increased its price target for Targa Resources to $343, maintaining an Overweight rating on the energy stock.
• Targa Resources demonstrated strong Q2 performance, exceeding profit estimates with a 38% increase in adjusted EBITDA due to record natural gas volumes.
• The company is securing future growth through new 20-year agreements with ExxonMobil and significant midstream infrastructure expansion, including a $5.00 billion capital investment.

On August 18, 2026, analyst firm Morgan Stanley increased its price target for Targa Resources (NYSE:TRGP) to $343. Targa Resources is a U.S. natural gas pipeline operator with a market capitalization of about $59.66 billion. The company focuses on gathering, processing, and transporting natural gas and natural gas liquids, primarily in key regions like the Permian Basin.

Morgan Stanley's updated price target is an increase from its previous target of $333, and the firm kept its Overweight rating on the energy stock. An Overweight rating suggests that the analyst believes the stock will perform better than others in its sector. At the time of the announcement, Targa Resources' stock price was $277.94.

This positive outlook is supported by the company's strong recent performance. Targa Resources exceeded Wall Street's second-quarter profit estimates, as highlighted by Reuters, due to record natural gas volumes. The company reported a 38% year-over-year increase in adjusted EBITDA, a key measure of operational profitability. This growth occurred despite challenges like market volatility and negative gas pricing.

Future growth is also a key factor, with Targa Resources announcing new 20-year agreements with ExxonMobil. These long-term deals cover natural gas gathering and processing services in the Permian Basin, securing a stable, fee-based revenue stream. This strengthens the strategic relationship between the two companies across a large and productive area.

To support this growth, Targa Resources is expanding its midstream infrastructure significantly. The company announced plans for three new natural gas processing plants and a new 70-mile midstream pipeline. As a result, Targa Resources is updating its full-year 2026 net growth capital estimate to approximately $5.00 billion, showing a major investment in its future capacity.