Energy Business

Goldman Sachs Sees $80 Oil This Year: 4 Conviction List Energy Stocks to Buy Now

Targa Resources

This top energy midstream company has had a string of positives lately. Targa Resources Corp (NYSE: TRGP) is a leading provider of midstream services and one of the largest independent midstream energy companies in North America. Targa owns, operates, acquires and develops a diversified portfolio of complementary midstream energy assets.

The company is primarily engaged in the business of gathering, compressing, treating, processing and selling natural gas; storing, fractionating, treating, transporting and selling NGLs and related products, including services to liquefied petroleum gas exporters; gathering, storing and terminaling crude oil; storing, terminaling and selling refined petroleum products.

Targa Resources has one of the premier asset positions in the Permian basin. With solid management, a strong balance sheet and attractive exposure to some of the most attractive U.S. energy basins, it remains a top pick across Wall Street.

Investors receive a 1.15% dividend. Goldman Sachs has set its price objective at $49. The posted consensus target is just $39.75, and Targa Resources stock closed most recently at $34.80.

These four top Goldman Sachs Conviction List energy picks are perhaps off the radar for some investors, but they offer outstanding growth potential and reasonable entry points, compared to some of the other stocks in the sector. It may make sense to buy partial positions now and see how earnings come in for the quarter, as all four will report in early May.