Texas Capital Upgrades Target Hospitality (NASDAQ:TH) to “Strong-Buy”

Target Hospitality (NASDAQ:TH) was upgraded by research analysts at Texas Capital from a “hold” rating to a “strong-buy” rating in a research report issued to clients and investors on Thursday,Zacks.com reports.

A number of other research analysts also recently weighed in on the stock. Weiss Ratings restated a “sell (d)” rating on shares of Target Hospitality in a report on Monday, December 29th. Stifel Nicolaus set a $11.00 price objective on shares of Target Hospitality in a report on Wednesday. Finally, Wall Street Zen raised shares of Target Hospitality from a “sell” rating to a “hold” rating in a research report on Saturday, November 15th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $11.00.

Target Hospitality Trading Up 6.8%

Shares of NASDAQ TH opened at $9.70 on Thursday. The business has a 50 day simple moving average of $7.55 and a 200 day simple moving average of $7.81. Target Hospitality has a 52 week low of $5.41 and a 52 week high of $9.90. The stock has a market cap of $967.87 million, a price-to-earnings ratio of -25.53 and a beta of 1.36. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.96 and a current ratio of 0.96.

Target Hospitality (NASDAQ:TH) last issued its quarterly earnings data on Wednesday, March 11th. The company reported ($0.15) earnings per share for the quarter, missing the consensus estimate of ($0.10) by ($0.05). The business had revenue of $89.78 million for the quarter, compared to the consensus estimate of $85.20 million. Target Hospitality had a negative net margin of 11.58% and a negative return on equity of 8.55%. On average, research analysts predict that Target Hospitality will post 0.65 earnings per share for the current fiscal year.

Insider Buying and Selling at Target Hospitality

In other news, EVP Heidi Diane Lewis sold 9,000 shares of the business’s stock in a transaction on Tuesday, January 20th. The shares were sold at an average price of $7.34, for a total value of $66,060.00. Following the completion of the sale, the executive vice president directly owned 131,742 shares in the company, valued at approximately $966,986.28. The trade was a 6.39% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 68.00% of the company’s stock.

Hedge Funds Weigh In On Target Hospitality

Institutional investors have recently made changes to their positions in the business. Rubric Capital Management LP increased its position in Target Hospitality by 9.5% during the second quarter. Rubric Capital Management LP now owns 2,189,456 shares of the company’s stock worth $15,589,000 after acquiring an additional 189,456 shares during the period. Vanguard Group Inc. grew its position in Target Hospitality by 43.0% during the third quarter. Vanguard Group Inc. now owns 1,994,641 shares of the company’s stock worth $16,915,000 after buying an additional 600,181 shares in the last quarter. Cooper Creek Partners Management LLC bought a new position in Target Hospitality during the second quarter valued at about $8,556,000. Dimensional Fund Advisors LP increased its stake in Target Hospitality by 17.0% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,176,561 shares of the company’s stock valued at $9,425,000 after acquiring an additional 171,324 shares during the period. Finally, Arrowstreet Capital Limited Partnership raised its holdings in Target Hospitality by 25.2% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,051,089 shares of the company’s stock valued at $8,913,000 after acquiring an additional 211,634 shares in the last quarter. 32.40% of the stock is currently owned by institutional investors.

Key Target Hospitality News

Here are the key news stories impacting Target Hospitality this week:

• Positive Sentiment: Company raised FY2026 revenue guidance to roughly $320M–$330M versus street consensus near $276M — a large upside to expectations that analysts and investors cheered. Article Title
• Positive Sentiment: Announced new committed multi?year contracts (including a $129M, 1,400?bed West Texas power/data center project and a $23M, 400?bed Pecos power contract) and noted >$740M of multi?year contracts announced since Feb 2025 — supports revenue visibility. Article Title
• Positive Sentiment: Q4 revenue topped estimates — $89.78M reported vs. ~$85.2M expected, indicating demand remained strong even as the company invests in growth. Article Title
• Neutral Sentiment: Full Q4 earnings call transcript, slide deck and conference call are available for details on revenue drivers and contract cadence (useful for digging into margin/booking timing). Article Title
• Neutral Sentiment: Street consensus listed an average analyst EPS forecast of ~0.65 for the current fiscal year, which implies expectations for improvement from recent losses — monitor guidance details and margin trajectory. Article Title
• Negative Sentiment: Q4 EPS missed expectations: ($0.15) vs. consensus ($0.10) — the company remains unprofitable on a GAAP basis, which keeps valuation metrics challenged. Article Title
• Negative Sentiment: Margins and profitability remain weak (negative net margin, negative ROE) and liquidity metrics are modest (current ratio ~0.96), so execution on converting backlog to profitable cash flow will be key to sustain the rally. Article Title

Target Hospitality Company Profile

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.