UPDATE: Wunderlich Securities Reiterates Hold Rating, Raises PT on Targa Resources Corp. After Energy Transfer Deal Rumor is Denied

In a report published Friday, Wunderlich Securities analyst Abhishek Sinha reiterated a Hold rating on Targa Resources Corp. TRGP, and raised the price target from $108.00 to $125.00. In the report, Wunderlich Securities noted, “After the market close, Bloomberg reported that Energy Transfer Equity (ETENR) is near a deal to purchase Targa Resources Corp. (TRGP) and Targa Resources LP (NGLS-$81.55, Buy). Based on the Bloomberg report, the transaction could be announced next week and could also involve Regency Energy Partners (RGP-NR). TRGP rose 20% on the report while NGLS rose 18%. The Bloomberg article also suggested that the combined entities (TRGP and NGLS) could be valued over $15B to as high as $17B. However, later in the evening, Targa Resources responded to the rumor indicating that it has no merit. So, we expect the stock to revert back to fundamentals soon. We are maintaining our Hold rating on the stock but raising our price target to $125.” Targa Resources Corp. closed on Thursday at $150.62.