Target Hospitality's (TH) momentum in winning new business is expected to continue, with any incremental wins in 2026 representing upside to its estimated 2027 adjusted earnings before interest, taxes, depreciation and amortization, Oppenheimer said in a Thursday note.

Building on this, Oppenheimer said that the company has successfully pivoted from lumpy government contracts tied to immigration to long-term contracts providing remote accommodations to emerging data center construction and related power-generation development.

Target Hospitality recently won a data center community contract with a major hyperscaler, providing over $550 million of committed minimum revenue over the initial five-year period, and has raised its 2026 adjusted EBITDA guidance to the range of $70 million to $80 million from $60 million to $70 million, Oppenheimer noted.

The brokerage said it now expects 2026 and 2027 adjusted EBITDA of $75 million and $160 million, up from $65 million and $125 million previously.

Oppenheimer maintained its outperform rating on Target Hospitality with a $18 price target.

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