Added to YB: 2022-10-17
Pitch date: 2022-10-17
TH [bullish]
Target Hospitality Corp.
-32.86%
current return
Author Info
Clark Square Capital is a former equity analyst and now a full-time investor managing their own capital. Sign up for their newsletter
Company Info
Target Hospitality Corp. operates as a specialty rental and hospitality services company in North America.
Market Cap
$650.8M
Pitch Price
$12.78
Price Target
N/A
Dividend
N/A
EV/EBITDA
3.36
P/E
9.36
EV/Sales
1.73
Sector
Hotels, Restaurants and Leisure
Category
N/A
$TH - Investing in Target Hospitality
TH: Specialty rental provider, $330M run-rate EBITDA post govt contract. 18% FCF yield, 4.4x '24 EBITDA. Debt paydown to net cash in 12mo. 70% govt revenue reduces volatility. Contract renewal likely given track record, $200M CAPEX. Risks: concentration, budget cuts. Upside: M&A, buybacks, O&G recovery. Bear case $8, base $22. Current price $11.73.
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