Oppenheimer Downgrades Target Hospitality (TH) to Perform

Oppenheimer analyst Scott Schneeberger downgraded Target Hospitality (NASDAQ: TH) from Outperform to Perform.

The analyst comments "Despite a formidable core customer contract structure, Target was adversely impacted by 3Q19 slowing upstream oil & gas drilling activity, which primarily impacted the uncontracted portion of its business. Compounded by lower than expected 3Q19 revenue/profit from the company's involvement in the TCPL project, 3Q19 pro forma adjusted EBITDA decelerated from the double-digits previously to just +2% y/y as margin contracted 190bps y/y. In anticipation of both headwinds persisting in 4Q19, Target significantly reduced its 2019 guidance. Correspondingly, we're reducing our 2019E/2020E adjusted EBITDA to $159.5M (+7% y/y; from $177.5M)/$154M (-3% y/y; from $209M), respectively."

For an analyst ratings summary and ratings history on Target Hospitality click here. For more ratings news on Target Hospitality click here.

Shares of Target Hospitality closed at $4.23 yesterday.

You May Also Be Interested In

• Deutsche Bank Downgrades SentinelOne Inc (S) to Hold on Valuation
• BMO Capital Resumes Global Net Lease (GNL), Upgrades to Outperform
• Morgan Stanley Starts Target Hospitality (TH) at Overweight