Courtesy of Benzinga.
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.
Posted-In: BloombergAnalyst Color News Downgrades Rumors Analyst Ratings Trading Ideas
