Stifel Reiterates Hold Rating on Target Hospitality (TH)

Stifel analyst Stephen Gengaro reiterated a Hold rating and $10.00 price target on Target Hospitality (NASDAQ: TH).

The analyst commented: "We highlight Target Hospitality, including a review of the recent contract extension for its pivotal Pecos Children Center's (PCC) influx care facility by the U.S. government (which included slightly lower leasing revenue due to a reduction in required beds for support staff). Although the PCC remains a one-year contract with annual renewal options through 2028, we believe the government will have a need for the facility. Additionally, TH is pursuing various growth opportunities to help diversify its contract base and reduce concerns over the significance of this single contract. We maintain our Hold rating with a $10 target price, and are tweaking our forecasts to reflect the new renewal terms on PCC. TH sits in our “Bobby Bonilla” category*, mainly because it generates solid FCF even after changes to the contract."

For an analyst ratings summary and ratings history on Target Hospitality click here. For more ratings news on Target Hospitality click here.

Shares of Target Hospitality closed at $8.42 yesterday.

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