H.C. Wainwright analyst Scott Buck reiterated a Buy rating on Transcat today and set a price target of $116.00.
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Scott Buck has given his Buy rating due to a combination of factors that highlight Transcat’s strategic growth and operational efficiency. The company has been leveraging automation to enhance its service segment margins, which have seen a notable increase from the low 30% range to the mid-30% range. This improvement is expected to continue as Transcat expands its automation capabilities, with dedicated programmers working to further boost efficiency. The potential for margin growth is significant, as automation allows technicians to handle multiple tasks simultaneously, thus driving operational leverage.
Furthermore, Transcat’s recent acquisition of Essco Calibration is anticipated to contribute positively to revenue and margins, aligning with the company’s M&A strategy. This acquisition not only strengthens Transcat’s market position but also enhances its service capabilities, offering opportunities for in-sourcing services previously outsourced. The combination of organic and inorganic revenue growth, coupled with disciplined cost management, positions Transcat for sustained financial performance. These factors underpin Buck’s confidence in recommending a Buy rating with a $116 price target.
Buck covers the Technology sector, focusing on stocks such as Intellicheck Mobilisia, Inuvo, and Widepoint. According to TipRanks, Buck has an average return of -10.0% and a 30.10% success rate on recommended stocks.
In another report released on August 15, Lake Street also reiterated a Buy rating on the stock with a $105.00 price target.