Northwest Gas Earns Buy Rating from Stifel Nicolaus

Northwest Gas (NWN) has received a Buy rating from Stifel Nicolaus analyst Selman Akyol with a price target of $50.00. Akyol has a 5-star rating and an average return of 10.6%. The company's shares closed at $40.73. NWN has a market cap of $1.64B and a P/E ratio of 15.84.

Stifel has upgraded Target Hospitality (NASDAQ: TH) from Hold to Buy, raising its price target to $11.00 from $7.50 [1]. The investment firm's positive outlook is primarily driven by the company's entry into the data center business. This strategic move follows Target Hospitality's announcement of its first data center contract, a two-year agreement with minimum commitments of $43 million. Stifel's revised target price is based on a scenario analysis that assumes Target Hospitality will operate 5,000 rooms for data center customers and 3,400 for Government Services over the next few years.

The company, currently trading at a P/E ratio of 72x with a market capitalization of $801 million, has maintained strong liquidity with a current ratio of 1.47. Stifel believes there are several similar deals in Target Hospitality’s pipeline, suggesting potential for further growth in this new business segment. Target Hospitality, which provides accommodation and hospitality services, is expanding beyond its traditional markets with this strategic move into the data center sector.

In other recent news, Target Hospitality Corp reported its second-quarter earnings for 2025, surpassing revenue expectations. The company achieved a revenue of $62 million, exceeding the forecast of $59.43 million. However, the earnings per share (EPS) were -$0.1223, slightly missing the anticipated -$0.11. Additionally, Target Hospitality announced a multi-year contract to provide hospitality services for a data center campus in the Southwestern United States. This agreement is projected to generate approximately $43 million in revenue through September 2027, with about $5 million expected in 2025. These developments highlight significant financial activities for Target Hospitality.

References:
[1] https://ca.investing.com/news/analyst-ratings/target-hospitality-stock-rating-upgraded-by-stifel-on-data-center-contract-93CH-4165681