Why Target Hospitality Stock Popped 31.7% on Friday
Shares of Target Hospitality (NASDAQ: TH) jumped as much as 31.7% in trading on Friday after the company announced a big increase in 2022 guidance. Shares closed the day up 25.8%.
Management announced that 2022 revenue is now expected to be between $500 million and $510 million, and adjusted discretionary cash flow is expected to be between $320 million and $330 million.
The big change for Target Hospitality is a government contract that has a minimum initial contract value of $575 million with the potential for more revenue for variable services. Government contracts account for about 73% of the company's expected 2022 revenue.
Source Fool.com
