UPDATE: Bank of America Downgrades Targa Resources on Valuation, Lack of Catalysts
Bank of America downgraded Targa Resources, Inc. (NYSE: TRGP) from Buy to Neutral and raised the price objective from $55.00 to $60.00.
Bank of America said, "We downgrade TRGP to Neutral (from Buy) primarily on valuation and a lack of Bank of America near-term positive catalysts, in our view. Since the end of November, TRGP's share price has increased 16% versus 4% for the Alerian MLP Index (AMZ). TRGP has also materially outperformed its underlying MLP, Targa Resources Partners (NGLS), as NGLS' unit price has increased only 3% since the end of November versus 16% for TRGP. Although TRGP has benefitted from the scarcity value associated with being one of the few pure-play publicly traded general partners (GP) structured as c-corps and from boasting one of the highest dividend growth rates in the space, we think TRGP is fully valued at current levels."
Targa Resources closed at $57.97 on Thursday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Tags: Bank of America