Transcat stock price target raised to $105 at Craig-Hallum

On Wednesday, Craig-Hallum reaffirmed its confidence in Transcat Inc. (NASDAQ:TRNS), raising the company’s price target from $94.00 to $105.00 while maintaining a Buy rating on the stock. The adjustment follows Transcat’s recent quarterly financial report, which showcased strong margins and overall profitability, particularly within its Service Segment. The stock has responded positively, surging 19% in the past week, though InvestingPro data indicates the stock is currently trading above its Fair Value, with a P/E ratio of 51.7x.

Transcat’s latest earnings results have been positively received, indicating a robust performance that has assuaged concerns from the previous quarter’s underwhelming outcomes. With revenue growth of 7.3% and a healthy current ratio of 2.29, InvestingPro analysis shows the company maintains strong financial health. Craig-Hallum highlighted the successful integration at Martin and the stabilization of the Solutions business as key factors contributing to the company’s turnaround.

The research firm’s statement reflected optimism about Transcat’s future, citing the company’s service offerings and its resilience against macroeconomic fluctuations. The analyst’s note suggested that past performance issues are now behind the company, and investors should consider the long-term potential for shareholder value creation.

The analyst’s commentary emphasized the strength of Transcat’s service segment, which appears to be a cornerstone of the firm’s value proposition. The positive outlook is rooted in the belief that the company’s strategic initiatives and market position will continue to drive growth and profitability.

In conclusion, Craig-Hallum’s revised price target signals a renewed investor sentiment towards Transcat, as the company moves past its previous challenges and focuses on leveraging its service capabilities to build a stable foundation for future growth.

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 an anticipated $76.67 million. This performance reflects strong investor confidence in Transcat’s strategic direction and financial health. Additionally, Transcat completed the acquisition of Martin Calibration for $25 million, a move that is expected to bolster its service offerings.

The company demonstrated solid performance for the full fiscal year, with consolidated revenue growing by 7% to $278.4 million. Service revenue increased by 7%, while distribution revenue rose by 8%. However, Q4 net income and EPS saw a decline compared to the previous year. Analyst Scott Buck from H.C. Wainwright upgraded Transcat’s price target to $116, maintaining a Buy rating, citing the company’s return to normalized organic growth and its strategic acquisitions.

Buck noted that Transcat’s operations in highly regulated industries could provide stability amid macroeconomic uncertainties. He also highlighted potential opportunities from increased onshore manufacturing driven by tariffs. Overall, these recent developments indicate Transcat’s continued focus on growth through strategic acquisitions and service integration, despite the challenging economic environment.

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