Analyst Sees Slower Dividend Growth At Targa Resources Corp

Targa Resources Corp.

could face uncertain growth in its natural gas market along with a dimming prospect for paying higher dividends, an analyst said Wednesday. The company, which holds interests in the natural gas limited partnership Targa Resources Partners LP

, changed hands recently at $101.93, down more than 2 percent. J.P. Morgan's Jeremy Tornet downgraded the Houston-based company to Neutral, from Overweight. Tornet maintained a Neutral rating on the Targa limited partnership, which traded at $45.55, up $0.23 cents recently. Targa Resources last month forecast 2015 dividend growth of 25 percent while the limited partnership said it expected distribution growth of between 4 percent and 7 percent. http://ir.targaresources.com/trc/releasedetail.cfm?ReleaseID=907815 But Tornet said that following 2015 dividend and distribution growth could slow to below expectations. The analyst cited "limited visibility" into 2016 gas production and cut his price target on Targa Resources by 3 percent to $117 and by 2 percent on Target Resources Partners to $49.