The significant surge in Target Hospitality's stock price is directly attributable to the acquisition offer from Arrow Holdings, which is at a substantial premium to the market price prior to the announcement. This kind of premium typically generates positive investor sentiment, as it reflects both the value a buyer sees in the company and the potential for shareholders to realize immediate gains on their investments. The establishment of a special committee by the Board to review the proposal further adds to the credibility of the offer, potentially sustaining the positive momentum in the short term.