TD Cowen Upgrades Targa Resources to Buy, Raising Target to $350

Key Facts

1TD Cowen upgraded Targa Resources (TRGP) from 'Hold' to 'Buy' and set a new price target of $350.

2Targa Resources entered a 20-year agreement with ExxonMobil to support wet gas growth in the Permian Basin.

3The company reported record second-quarter adjusted EBITDA of $1.60 billion in 2026.

As the U.S. energy infrastructure sector continues to expand, Targa Resources is positioning itself as a primary beneficiary of Permian Basin volume growth. TD Cowen has upgraded the stock from 'Hold' to 'Buy', raising its price target to $350. This upgrade follows a strategic 20-year agreement with ExxonMobil to support wet gas production and the reporting of record second-quarter adjusted EBITDA of $1.60 billion in 2026.

The upgrade highlights expectations for peer-leading EBITDA growth driven by physical volume increases rather than just commodity price fluctuations. Per market data from September 18, 2026, industry peers showed mixed levels with BP closing at $44.58 and Chevron (CVX) at $209.51. Targa now anticipates its full-year 2026 adjusted EBITDA to reach the upper end of its guidance range, supported by robust marketing margins and volume growth.

Targa Resources (TRGP) stood at $292.19 at the close of September 18, 2026, while ExxonMobil (XOM) closed at $163.54. Traders should watch for energy sector catalysts, including the API Crude Oil Stock Change report, which serves as a key indicator for midstream and upstream activity levels in the coming days.