Market Overview

2 Energy Companies Making A 20% Parabolic Move

Related ETE
Baird Analyst Expects DAPL Decision To Be Reversed
A Timeline Of The Dakota Access Pipeline
Trump team reiterates support for completing Dakota Access pipeline (Seeking Alpha)

Trading in Targa Resources (NYSE: TRGP) and Targa Resources Partners (NYSE: NGLS) is heating up.

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.

Related: Targa Shares Rocket Higher Amid Rumor Of Interst From Energy Transfer

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 2016BernsteinUpgradesMarket PerformOutperform
Sep 2016MizuhoInitiates Coverage onBuy
Sep 2016Stephens & Co.Initiates Coverage onEqual-Weight

View More Analyst Ratings for ETE
View the Latest Analyst Ratings

Posted-In: BloombergAnalyst Color News Downgrades Rumors Analyst Ratings Trading Ideas


Related Articles (NGLS + ETE)

View Comments and Join the Discussion!