
TH Stock Forecast & Price Target
TH Analyst Ratings
Bulls say
Target Hospitality Corp is positioned for a positive outlook driven by substantial investments in data center infrastructure, totaling approximately $1.2 trillion year-to-date, which is expected to significantly increase demand for the company's specialty rental and hospitality services. The recently secured five-year contract in South Dilley, projecting revenues of $246 million, adds considerable visibility and stability to the company’s financials. Additionally, the potential for expanding to 1,500 beds in this contract highlights significant growth opportunities in addressing housing needs linked to the proliferation of data centers, particularly in remote areas.
Bears say
The negative outlook on Target Hospitality's stock is primarily driven by the anticipated unfavorable terms of new contracts for its Pecos assets, which are expected to be less advantageous than those from the recently canceled PCC contract. Additionally, the company's reliance on government contracts makes it vulnerable to fluctuations in U.S. land drilling and completions activity, potentially leading to decreased demand for its services. Lastly, the risk of idled rooms resulting from these cancellations further exacerbates concerns regarding revenue stability and overall financial performance.
This aggregate rating is based on analysts' research of Target Hospitality Corp and is not a guaranteed prediction by Public.com or investment advice.
TH Analyst Forecast & Price Prediction
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