Targa Resources Corp provides midstream natural gas and natural gas liquids services and is in bearish trend with -50% YTD.

According to Surperformance ratings, the company still showing poor fundamentals. Sales are expected to decrease on the current fiscal year, its operating profit is anticipated at lower levels than those registered in prior year (just 511 million in 2015 against 641 million in 2014). Furthermore, the security seems highly overvalued compared to its peers (P/E ratio of 29,5x for the current year). Analysts have also regularly revised downward their EPS forecast with just USD 1.8 billion (2,43 billion in 2014).

Technically, prices are in a bearish trend for one year, confirmed by bad-oriented daily and weekly moving averages.

Due to the technical configuration and a bad fundamental situation that does not justify the current valuation of the group, this area could trigger a sell signal in a scenario of profit-taking. More precisely, investors can open a short position under the USD 53,40 resistance. The first objective will be fixed near the USD 44 support. This strategy should be protected by a stop loss above USD 62.