2 Energy Companies Making A 20% Parabolic Move
Shares of both companies spiked 20 percent higher into Thursday's close on a Bloomberg report that Energy Transfer Equity (NYSE: ETE) would be acquiring the firms.
Late into after-hours trading, shares started plummeting after Targa confirmed that it had high level discussions to be acquired by Energy Transfer Equity, but the talks have been terminated.
Not helping shares fall back is a Wunderlich Securities downgrade of Targa.
“We expect the stock to revert back to fundamentals soon. Accordingly we are downgrading the stock to Hold with a price target of $70.”
The $70 price target is right around where the stock was trading before the misleading rumor. Furthermore, Wunderlich writes, “The risk/reward proposition appears out of balance for NGLS holders.”
Shares of Targa Resources are down 11.81 percent to $132.83 and Targa Resources Partners shares are down 9.12 percent to $81.55.
Shares of Energy Transfer Equity are subsequently up 1.27 percent.
Latest Ratings for ETE
|Nov 2016||Bernstein||Upgrades||Market Perform||Outperform|
|Sep 2016||Mizuho||Initiates Coverage on||Buy|
|Sep 2016||Stephens & Co.||Initiates Coverage on||Equal-Weight|
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