Northland maintains Transcat stock at Market Perform with $85 target

On Wednesday, Northland reiterated its Market Perform rating and $85.00 price target for Transcat Inc. (NASDAQ:TRNS), following the company’s release of fourth-quarter results for fiscal year 2025. Currently trading at $92.49, InvestingPro analysis suggests the stock is trading above its Fair Value. The service segment of Transcat, adjusted for an additional week in the prior year, showed high single-digit growth, contributing to a 7.3% year-over-year revenue increase. The firm noted that Transcat’s effective expense management contributed to better-than-expected bottom-line results.

Transcat’s recent financial performance has led Northland to make slight adjustments to their financial forecasts for the company. The stock has shown remarkable strength with a 19% return over the past week, though it trades at elevated multiples with a P/E ratio of 51.7. Despite the positive quarterly outcome, Northland’s stance remains that Transcat shares are currently trading at a fair value, suggesting no immediate change in investor approach is warranted.

The company’s stronger service revenue growth, coupled with its successful cost control measures, were key highlights in the report. These factors have played a significant role in Transcat’s ability to surpass bottom-line expectations for the quarter. According to InvestingPro, which offers 13 additional investment tips for TRNS, the company maintains a healthy financial position with a current ratio of 2.29 and operates with moderate debt levels.

Northland’s price target of $85.00 remains unchanged, indicating that the firm believes the stock is priced appropriately based on their assessment of Transcat’s financial health and market position.

Investors monitoring Transcat Inc. can refer to this reiterated rating and price target as they consider the stock’s performance in relation to market expectations and the company’s financial trajectory.

In other recent news, Transcat Inc. reported its fiscal Q4 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.68, compared to the forecasted $0.65. The company’s revenue also exceeded projections, reaching $77.13 million against a forecast of $76.67 million. Additionally, Transcat’s consolidated revenue for fiscal 2025 grew by 7% to $278.4 million, with service revenue increasing by 7% and distribution revenue rising by 8%. The strategic acquisition of Martin Calibration for $25 million contributed to this growth, marking a significant move in expanding their service capabilities.

H.C. Wainwright recently updated its outlook on Transcat, raising the company’s price target to $116 from $106 while maintaining a Buy rating. Analyst Scott Buck noted the company’s return to normalized organic growth and highlighted its resilience in highly regulated industries. Craig-Hallum also expressed confidence in Transcat by increasing the price target to $105 from $94, emphasizing the strong performance in the service segment and successful integration at Martin.

The company’s strategic focus on automation and service integration was mentioned as a critical factor in maintaining operational efficiency and profitability. Despite macroeconomic uncertainties and tariffs, Transcat’s work with customers in regulated sectors like the FAA and FDA is expected to provide steady demand. Both analyst firms, H.C. Wainwright and Craig-Hallum, maintain a positive outlook on the company’s long-term potential for revenue growth and shareholder value creation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.