In a report released today, Scott Buck from H.C. Wainwright reiterated a Buy rating on Transcat, with 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 strong financial performance and strategic growth initiatives. The company’s recent earnings call revealed revenue figures that surpassed both internal and external expectations, largely driven by robust demand in their equipment rental business. This broad-based demand is expected to sustain, contributing to improved gross margins in the distribution segment. Additionally, the acquisition of Essco Calibration is anticipated to significantly boost annual revenue with favorable margins, and the potential for further mergers and acquisitions remains a key growth strategy.
Furthermore, Scott Buck notes that Transcat is well-positioned for organic growth in its service segment, projecting high single-digit growth by the fiscal year’s end. The combination of increasing revenue, expanding gross margins, and disciplined cost management is expected to enhance operating leverage. The potential on-shoring of manufacturing is also seen as a future growth catalyst. With these factors in mind, Scott Buck maintains a Buy rating with a $116 price target, reflecting a significant upside from current trading levels.
In another report released on August 8, Craig-Hallum also maintained a Buy rating on the stock with a $111.00 price target.
Based on the recent corporate insider activity of 15 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.