Northland Securities analyst Jeff Grampp maintained a Buy rating on Target Hospitality Corp (TH) today and set a price target of $12. The company’s shares closed last Monday at $6.10, close to its 52-week low of $5.65.
Grampp observed:
“We are updating estimates after scrubbing our model to be more conservative as TH integrates recent acquisitions and new communities. We are also modestly adjusting long-term estimates for a slower expected ramp in the Permian Basin. While we believe that TH is largely executing its strategy, we are reducing our PT from $14 to $12 for slightly reduced estimates and a lower target multiple from a 10% premium to the peer group to in-line at 7.6x 2020 EV/EBITDA.”
According to TipRanks.com, Grampp is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -18.3% and a 20.1% success rate. Grampp covers the Basic Materials sector, focusing on stocks such as Sundance Energy Australia, Penn Virginia Corporation, and SilverBow Resources Inc.
Target Hospitality Corp has an analyst consensus of Moderate Buy, with a price target consensus of $11.50.
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Based on Target Hospitality Corp’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $10.58 million. In comparison, last year the company had a net profit of $1.17 million.
Based on the recent corporate insider activity of 29 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of TH in relation to earlier this year.
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Target Hospitality Corp. engages in the provision of rental accommodations with premium catering and value-added hospitality services. Its services include catering, housekeeping and maintenance, recreation and leisure, fitness, security, and transportation. The company was founded in July 12, 2017 and is headquartered in The Woodlands, TX.
