In a report released today, Scott Buck from H.C. Wainwright reiterated a Buy rating on Transcat (TRNS – Research Report), with a price target of $116.00.
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Scott Buck’s rating is based on Transcat’s favorable growth and margin outlook, which he believes is not yet fully reflected in the company’s recent share performance. The company has demonstrated strong organic growth within its service segment and has benefited from recent acquisitions, such as Martin Calibration. Buck anticipates continued organic growth driven by demand in core segments like life sciences, oil & gas, and defense, complemented by further mergers and acquisitions, which are central to Transcat’s long-term growth strategy.
Additionally, Transcat’s revenue is expected to rise, with projections indicating an 8.6% increase in FY26, alongside improvements in gross margin due to enhanced efficiencies from automation in the calibration process. Despite potential economic uncertainties, Buck believes Transcat is well-positioned due to its operations in highly regulated industries, providing high revenue visibility. He recommends taking advantage of the current share weakness to invest in anticipation of long-term revenue growth and margin improvements, maintaining a Buy rating with a $116 price target.
Based on the recent corporate insider activity of 14 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TRNS in relation to earlier this year.