Target Hospitality Corp. (NASDAQ:TH) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts give Target Hospitality a “Moderate Buy” consensus, with four buy ratings, one strong-buy rating and one sell rating. The average 12-month price target is $24.60, above the stock’s reported $20.25 opening price.
• Recent analyst actions were generally positive: Morgan Stanley initiated coverage with an overweight rating, while Oppenheimer raised its price target to $27 and assigned an outperform rating.
• Target Hospitality’s latest quarterly results beat expectations, with an adjusted EPS loss of $0.09 versus the estimated $0.11 loss and revenue of $85.45 million versus the $79.30 million consensus estimate. However, the company remains unprofitable, with a negative net margin and return on equity.

Shares of Target Hospitality Corp. (NASDAQ:TH - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the six research firms that are covering the firm, MarketBeat.com reports. One investment analyst has rated the stock with a sell rating, four have assigned a buy rating and one has assigned a strong buy rating to the company. The average 12 month price objective among analysts that have covered the stock in the last year is $24.60.

Several equities analysts recently commented on TH shares. Morgan Stanley assumed coverage on Target Hospitality in a research note on Monday, August 17th. They issued an "overweight" rating and a $22.00 price objective on the stock. Weiss Ratings upgraded Target Hospitality from a "sell (d)" rating to a "sell (d+)" rating in a research note on Friday, August 21st. Northland Securities set a $25.00 target price on Target Hospitality in a research note on Thursday, August 27th. Stifel Nicolaus set a $26.00 price target on Target Hospitality in a research report on Thursday, August 27th. Finally, Oppenheimer increased their price target on Target Hospitality from $24.00 to $27.00 and gave the stock an "outperform" rating in a research note on Tuesday.

Institutional Investors Weigh In On Target Hospitality

Institutional investors have recently added to or reduced their stakes in the business. HighTower Advisors LLC boosted its position in Target Hospitality by 14.9% during the second quarter. HighTower Advisors LLC now owns 1,842,267 shares of the company's stock worth $37,509,000 after purchasing an additional 238,280 shares during the period. California State Teachers Retirement System raised its position in shares of Target Hospitality by 2,633.4% in the second quarter. California State Teachers Retirement System now owns 876,498 shares of the company's stock valued at $17,845,000 after purchasing an additional 844,432 shares during the period. AXQ Capital LP purchased a new stake in shares of Target Hospitality during the 2nd quarter valued at approximately $471,000. Senator Investment Group LP purchased a new stake in shares of Target Hospitality during the 2nd quarter valued at approximately $28,491,000. Finally, Moore Capital Management LP bought a new position in Target Hospitality in the 2nd quarter worth approximately $509,000. 32.40% of the stock is owned by hedge funds and other institutional investors.

Target Hospitality Trading Up 3.7%

Shares of Target Hospitality stock opened at $20.25 on Wednesday. The firm has a market cap of $2.02 billion, a PE ratio of -53.29 and a beta of 1.51. Target Hospitality has a 1 year low of $5.97 and a 1 year high of $20.85. The company has a debt-to-equity ratio of 0.11, a current ratio of 0.65 and a quick ratio of 0.65. The stock has a fifty day moving average price of $17.23 and a 200-day moving average price of $15.25.

Target Hospitality (NASDAQ:TH - Get Free Report) last announced its quarterly earnings data on Monday, August 10th. The company reported ($0.09) EPS for the quarter, topping the consensus estimate of ($0.11) by $0.02. The business had revenue of $85.45 million for the quarter, compared to analyst estimates of $79.30 million. Target Hospitality had a negative net margin of 10.85% and a negative return on equity of 9.80%. Equities research analysts anticipate that Target Hospitality will post -0.08 EPS for the current year.

About Target Hospitality

Target Hospitality is a lodging solutions provider specializing in the ownership and operation of modular workforce housing communities across North America. The company serves large-scale clients in the energy, mining, construction and government sectors that require temporary or long-term accommodations for remote workforces. Its housing portfolio includes suite-style units, single-family cabins and “man-camp” dormitories, designed to match project size, duration and workforce composition.

In addition to lodging, Target Hospitality delivers integrated support services such as on-site dining and culinary management, housekeeping, maintenance, facility management and logistics planning.

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