Target Hospitality slides on PE backer's $259 mln stake sale
BUZZ-Target Hospitality slides on PE backer's $259 mln stake sale ** Shares of workforce accommodation firm Target Hospitality TH.O down 7.1% at $18.82 premarket on Weds after $259 mln secondary offering priced
** The Woodlands, Texas-based late Tues announced 14 mln shares sold by affiliates of private equity firm TDR Capital at $18.50
** Offering size increased from 13 mln shares and priced at 8.6% discount to last sale
** In addition, TH to buy $30 mln worth of offering shares from the underwriters; Morgan Stanley, Deutsche Bank and JP Morgan are bookrunners
** Prior to offering, TDR owned ~45.98 mln shares, about 46% of TH, per the prospectus
** Two weeks ago, TH boosted its 2026 rev forecast to $435-$445 mln after announcing new multi-year contract to provide facility and hospitality services for a top-five hyperscaler's data center development in West Texas
** Through Tues close, TH stock up 153% YTD
** All 6 analysts covering TH are bullish and their median PT is $25.50, per LSEG data
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))