Will Targa Resources (NGLS) Stock Be Affected Today by This Analyst Upgrade?

NEW YORK (TheStreet) -- Shares of Targa Resources Partners LP (NGLS) are down 1.46% to $56.66 despite the company being upgraded to "outperform" from "neutral" at Credit Suisse earlier on Tuesday.

The firm set a price target of $76 for the midstream energy assets company.

Credit Suisse said it raised Targa Resources Partners rating because of a valuation call based on re-assessment of master limited partnership's post-earnings.

"No change to forecasts. NGLS offers a total return potential of 37 % compared to our coverage average of 26%," said analysts at Credit Suisse.

Separately, TheStreet Ratings team rates TARGA RESOURCES PARTNERS LP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate TARGA RESOURCES PARTNERS LP (NGLS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, reasonable valuation levels, good cash flow from operations and compelling growth in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • NGLS's very impressive revenue growth greatly exceeded the industry average of 6.7%. Since the same quarter one year prior, revenues leaped by 56.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 115.1% when compared to the same quarter one year prior, rising from $59.70 million to $128.40 million.
  • Net operating cash flow has increased to $115.00 million or 15.57% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -2.53%.
  • You can view the full analysis from the report here: NGLS Ratings Report
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