Stifel Nicolaus analyst Peter McNally maintained a Buy rating on Tracsis (TRCS – Research Report) today and set a price target of p1,267.00.
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Peter McNally has given his Buy rating due to a combination of factors that highlight Tracsis’ strategic positioning and growth potential. A significant reason behind the rating is Tracsis securing a multi-year contract as the provider of the core ‘Tap Converter’ backend technology for the National Rail’s pay-as-you-go (PAYG) system across the UK. This contract not only strengthens Tracsis’ foothold in the rail industry but also positions it advantageously for the upcoming establishment of Great British Rail (GBR).
Additionally, the momentum in Tracsis’ smart ticketing solutions, evident through its recent deployments in Scotland and Wales, further supports the company’s growth prospects. Despite the challenges faced in the rail sector, the potential for increased annual recurring revenues from processed PAYG journeys signifies an upside risk. Tracsis’ alignment with the Department of Transport’s modernization plans for the UK rail system, particularly in expanding PAYG ticketing, reinforces its market position and supports the Buy recommendation.