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Stifel upgrades Target Hospitality to Buy on data center exposure

Stifel last night upgraded Target Hospitality (TH) to Buy from Hold with a price target of $11, up from $7.50. The firm assumes the company will operate 5,000 rooms for data center customers and 3,400 for government services over the next few years. Target announced its entrance into the data center business with a two-year contract valued with minimum commitments of $43M and there are several similar deals in its pipeline, the analyst tells investors in a research note.

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