Why Target Hospitality Shares Are Surging Today

Target Hospitality Group TH has raised its previously announced FY22 outlook by 53%.
The upgrade is related to the significantly expanded and enhanced lease and services agreement supporting domestic humanitarian aid efforts.
The company sees FY22 revenue of $500 million - $510 million (prior view $325 million - $335 million), versus the consensus of $333.13 million.
Target Hospitality expects FY22 adjusted EBITDA of $295 million - $305 million and discretionary cash flow of $320 million - $330 million.
The company anticipates Q2 revenue of $102 million - $107 million, against the consensus of $82.67 million.
Approximately 99% of the company's anticipated 2022 revenue is under contract, with about 73% of contracted revenue having minimum revenue commitments.
Price Action: TH shares are trading higher by 15.70% at $7.00 in premarket on the last check Friday.
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