Report
Stephen Ellis
EUR 101.80 For Business Accounts Only

Initiating Coverage on No-Moat Targa Resources; We Like Its Downstream Exposure

We are initiating coverage on Targa Resources with a no-moat rating and a $44 fair value estimate. Our valuation implies a 2018 enterprise value/EBITDA multiple of 11.9 times and a dividend yield of 8.3%. With shares trading only slightly below our fair value estimate, we see the firm as fairly valued. Targa operates as a corporation instead of a limited partnership, which brings certain advantages over limited partnerships in terms of broadening the shareholder base, allowing it to be represent...
Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Stephen Ellis

Other Reports from Morningstar

ResearchPool Subscriptions

Get the most out of your insights

Get in touch