Target Hospitality (TH) has "solid potential" for additional contract wins, which would likely represent positive catalysts and could boost 2027 financial estimates, Oppenheimer said in a note Tuesday.

The company has won three long-term contracts since April with guaranteed leasing revenue to provide remote accommodations and services to customers constructing data centers, the analysts said. They also noted that the company is poised to continue its flywheel of contract wins over the coming quarters, which should add yearly revenue and profit growth.

Target's potential pipeline from new contracts remains over 20,000 beds. The analysts said the company is "well positioned with the proper strategy, in the right locations," with timely offerings "at an attractive value proposition."

Due to the company's recent "Pecos Hyperscaler Community" contract win, Oppenheimer increased its estimates for earnings before interest, taxes, depreciation, and amortization to $110 million from $90 million in 2026 and to $250 million from $230 million in 2027.

Oppenheimer kept the company's stock rating at outperform and raised the price target to $27 from $24.

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