Targa Resources (TRGP) is positioned for growth into 2026 and beyond, supported by strong Permian volume growth and potential upside from commodity price tailwinds, RBC Capital Markets said.

The brokerage said in a Monday note that higher 2026 guidance was driven by strong Q1 results, an improved outlook for natural gas marketing, LPG export optimization opportunities, and Permian volumes that benefit the company's integrated asset footprint.

Targa said Q2 Permian inlet volumes are trending significantly higher than Q1, RBC noted, adding that the company continues to expect low double-digit Permian volume growth in 2026.

RBC also highlighted incremental growth visibility from new infrastructure projects, including two natural gas processing plants, Roadrunner III and Copperhead II, both expected to come online in Q1 2028 to support customer-driven demand in the Permian Delaware basin.

The note added that headwinds from Waha price-related shut-ins could reverse as additional takeaway capacity comes online, potentially providing upside across TRGP's system.

RBC reiterated its outperform rating on the stock and increased its price target to $281 from $270.

Price: 255.61, Change: +2.43, Percent Change: +0.96