Target Hospitality is This Week’s Featured Stock Under $10 -Breaking
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© Reuters.Target Hospitality is This Week’s Featured Stock Under $10 Target Hospitality (NASDAQ:) is a specialty rental and hospitality services company that primarily caters to the Oil & Gas Equipment & Services industry. It has four segments, Permian Basin and Bakken Basins; Government; and TCPL’s Keystone Pipeline. Today, there are just under 14,000 beds at 26 locations. Learn why there is so much potential for the company with the rise in oil prices.Target (NYSE: ) HospitalityTH(*() is a specialty rental and hospitality services company that primarily caters to the Oil & Gas Equipment & Services industry. It has four segments, Permian Basin and Bakken Basins; Government and TCPL Keystone Pipeline. The company has approximately 14,000 beds at 26 different locations.Given that a large bulk of TH’s revenue comes from companies in the energy sector, it’s not surprising that revenues were depressed along with energy prices for all of last year. Despite oil prices starting to move higher in the latter part of 2020, activity in the shale regions didn’t pick up as shale projects are only economically viable with oil prices above $70.
Oil prices now hover above $80, and the situation is improving rapidly. If oil prices continue to rise, there is a significant increase in rig count in the shale areas with more. The passing of the infrastructure bill is another potential boom for TH’s government unit. Already, TH’s revenues are on the mend as sales in the last quarter were only 8% below 2019 levels.
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