Target Hospitality (TH) stock surged on Wednesday after the specialty rental and hospitality services company announced a five-year $550 million data center agreement. Under the terms of this agreement, Target Hospitality will construct and provide comprehensive facility and hospitality services for a data center campus in North Texas.
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Target Hospitality didn’t name the company it reached the data center agreement with. However, it did say that it was a top-five hyperscaler. The company also noted that its contract includes two options to extend services for two years, potentially extending the deal to 2035. In addition to that, the company said it expects the deal to generate annual revenue of $20 million to $40 million on top of the $550 million in the contract.
Brad Archer, President and CEO of Target Hospitality, said, “Target is now firmly positioned as a well‑capitalized and trusted partner in the unprecedented capital investment cycle underway across AI infrastructure, critical minerals, and power generation development. The momentum we have established continues to strengthen our growth pipeline, including advanced discussions on additional potential opportunities supporting data center and related infrastructure development.”
Target Hospitality Guidance Update
Target Hospitality provided updated 2026 guidance alongside its new data center deal. It now expects:
- Revenue to range from $360 million to $370 million.
- Adjusted EBITDA to come in between $70 million and $80 million.
- Total Capital Expenditures to range from $220 million to $240 million, excluding acquisitions.
Target Hospitality Stock Movement Today
Target Hospitality stock was up 32.76% in pre-market trading on Wednesday, following a slight gain yesterday. The shares have rallied 15.86% year-to-date and 35.08% over the past 12 months.
With today’s news came heavy trading of TH stock, as more than 1.5 million shares changed hands. For comparison, the company’s three-month average daily trading volume is about 437,000 shares.
Is Target Hospitality Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Target Hospitality is Strong Buy, based on four Buy ratings over the past three months. With that comes an average TH stock price target of $11.25, representing a potential 21.23% upside for the shares.
