Market Overview

2 Energy Companies Making A 20% Parabolic Move

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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

May 2017BernsteinUpgradesMarket PerformOutperform
Apr 2017JefferiesUpgradesHoldBuy
Jan 2017Raymond JamesUpgradesMarket PerformOutperform

View More Analyst Ratings for ETE
View the Latest Analyst Ratings

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


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