The firm also increased its price target to $55 from $47 on shares of the Houston-based provider of natural gas and natural gas liquids in the U.S.
"Targa offers healthy dividend yield of 7.4% with dividend growth outlook in 2018. We think the reason to own Targa is its high dividend yield which we believe is safe and well positioned for growth in 2018," Barclays wrote in a note earlier today.
While many of its peers are in the process of de-levering their balance sheet, Targa has successfully lowered its leverage since the start of the year, the firm added.
"We believe a healthy balance sheet will support Targa's current dividend even under a more bearish price scenario and, at the same time, allow it to benefit from industry consolidation which has picked up with the prolonged commodity downturn," Barclays said.
Shares of Targa closed higher today.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C- on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and largely solid financial position with reasonable debt levels by most measures.
But the team also finds weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: TRGP