Should I Buy TH? TH 2026 Analysis

Should You Buy Target Hospitality Corp (TH) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

6.790

1 Day change

0.44%

52 Week Range

10.120

Analysis Updated At

2026/01/26

Target Hospitality Corp (TH) is not a strong buy for a beginner long-term investor right now. While the stock has potential due to its AI/data center growth narrative and a positive analyst rating, the weak financial performance, lack of significant trading signals, and technical indicators showing a bearish trend make it unsuitable for immediate investment. The investor may consider monitoring the stock for future improvements.

Technical Analysis

The MACD is negative and expanding downward, indicating bearish momentum. RSI is neutral at 21.726, and moving averages are converging, showing no clear trend. The stock is trading near its S1 support level of 7.411, with resistance at 8.297. Overall, the technical indicators suggest a bearish or neutral trend.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

The low put-call ratios indicate bullish sentiment in the options market, but the overall trading volume is low, limiting its reliability.

Technical Summary

Sell

Buy

Positive Catalysts

Analyst Stephen Gengaro reiterates a Buy rating with an $11 price target, citing the company's role in AI/data center growth.
Hedge funds and insiders are neutral, indicating no significant negative sentiment.

Neutral/Negative Catalysts

Weak financial performance in Q3 2025, with a net income drop of -103.98% YoY and EPS down -105.00%.
Gross margin dropped significantly by -67.87% YoY, reflecting operational challenges.
No recent news or significant trading trends to support a positive narrative.

Financial Performance

In Q3 2025, revenue increased by 4.37% YoY to $99.36M, but net income dropped to -$795K, down -103.98% YoY. EPS fell to -$0.01, and gross margin declined to 13.94%, down -67.87% YoY. The financials indicate declining profitability despite modest revenue growth.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Stifel analyst Stephen Gengaro maintains a Buy rating with an $11 price target, citing the company's growth in AI/data center contracts and Power Community Contract expansions.

2 Analyst Rating

Wall Street analysts forecast TH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TH is 11 USD with a low forecast of 11 USD and a high forecast of 11 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

1 Buy

1 Hold

0 Sell

Moderate Buy

Current: 6.760

Low

Averages

High

Current: 6.760

Low

Averages

High

Stifel

Stephen Gengaro

Buy

maintain

$11

AI Analysis

2025-12-30

Reason

Stifel

Stephen Gengaro

Price Target

$11

AI Analysis

2025-12-30

maintain

Buy

Reason

Stifel analyst Stephen Gengaro, who continues to believe Target Hospitality remains "a relatively undiscovered play on AI/data center growth in the U.S. market," is updating estimates to reflect the recent expansions of its data center contracts and the Power Community Contract. The firm is reiterating a Buy rating and $11 price target on the shares.

Texas Capital

Hold

initiated

2025-10-01

Reason

Texas Capital

Price Target

2025-10-01

initiated

Hold

Reason

Texas Capital initiated coverage of Target Hospitality with a Hold rating and $9 price target. The firm likes the company's dominant market share in specialized government services lodging but cites valuation for the Hold rating.

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TH Should I Buy

TH Should I Buy

Should You Buy Target Hospitality Corp (TH) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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