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Is this Large Market Cap Stock target price reasonable for Targa Resources Corp. (NYSE:TRGP)?

The company in question is, Targa Resources Corp. (NYSE:TRGP) currently with a stock price of 47.92 (-0.21% today). The market cap for Targa Resources Corp. is 8017.9, and is in the sector Basic Materials, and Oil & Gas Pipelines industry. The target price for Targa Resources Corp. is 46.87. Currently Targa Resources Corp. is trading with a P/E of 151.01, and a forward P/E of 322.28. Average volume for Targa Resources Corp. is 2102.11 and so far today it is 624542.

Performance in the last year for Targa Resources Corp. has been -12.98%. For EPS growth, Targa Resources Corp. has seen a growth of -55.20%, and is looking to grow in the next year to 135.00%. More long term stats show that EPS growth has been 17.40% over the last five years and could be 9.90% for the next five years. Targa Resources Corp. has seen sales growth quarter over quarter at -53.10%, with EPS growth quarter over quarter at -194.70%. The 20-day simple moving average is 4.89%, with the 200-day simple moving average coming to 35.93%.

Since the IPO date for Targa Resources Corp. on the 12/07/2010, Targa Resources Corp. has seen performance year to date to be 93.74%. With Targa Resources Corp. trading at 47.92, the dividend yield is 7.58%, and the EPS is 0.32.

So could Targa Resources Corp., be undervalued? Well as said before P/E is 151.01. The PEG is 15.25, P/S is 1.27 and the P/B is at 1.47. The P/cash is 46.92, with P/free cash flow at 450.44.

Targa Resources Corp. ability to deal with debt shows that the current ratio is 0.9, and the quick ratio is 0.8. This is with long term debt/equity at 0.92, and total debt/equity at 0.96.

In terms of margins, Targa Resources Corp. has a gross margin of 28.30%, an operating margin of 0.50% and a profit margin of -0.30%.Payout ratio for Targa Resources Corp. is *TBA. Return on assets come to -0.10% with return on investment coming to 1.50%.

Insider ownership for Targa Resources Corp., is at 1.10% and institutional ownership comes to 83.70%. Outstanding shares are at 166.97. While shares float is 161.6. The float short is currently 6.14%, and short ratio is 4.72.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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