Wednesday, October 13, 2010

Barclays (NYSE:BCS) Likes Targa Resources (Nasdaq:NGLS) Distribution Growth Outlook

Citing their sold distribution growth potential, Barclays (NYSE:BCS) reiterated their "Overweight" rating on Targa Resources (Nasdaq:NGLS).

Barclays also readjusted earnings after the recent closing of the acquisition of Vesco.

"We are raising our EBITDA/DCF estimates given the effects of the Vesco acquisition which closed on Sep 28. We adjust our distribution growth estimate to 3% in 2010 and maintain our distribution growth estimate of 5% from 2011-2013. Our distribution estimate implies average distribution coverage of 1.3x. We continue to believe NGLS is well positioned to show solid distribution growth driven by organic projects and 3rd party acquisitions," said Barclays.

Targo closed yesterday at $30.39, gaining $0.38, or 1.27 percent. Barclays raised their price target on natural gas and natural gas liquid services company to $31 a share.


  1. NGLS is a great buy in this price point.

  2. "sold distribution growth potential"?

    Also NGLS is traded on NYSE not Nasdaq.

    Guess you don't have to proof read blogs...