Tracsis (TRCS – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Peter McNally from Stifel Nicolaus maintained a Buy rating on the stock and has a p974.00 price target.
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Peter McNally has given his Buy rating due to a combination of factors that highlight Tracsis’s potential for long-term growth despite current challenges. The company has demonstrated resilience with a 2% like-for-like revenue growth and maintains a strong cash position with £22m, which supports its financial stability and allows for strategic initiatives like the £3m share buyback.
Despite a challenging market environment, Tracsis is well-positioned as a key technology provider in the UK rail sector, with limited competition and emerging opportunities in the US. McNally anticipates low-single digit revenue growth and mid-single digit profit growth, with improving free cash flow beyond the current year. The stock’s current valuation at an FY25E PE of 11.3x (8.4x ex-cash) is seen as attractive for long-term investors, with potential for estimate upgrades if larger deals are secured.
According to TipRanks, McNally is ranked #9268 out of 9371 analysts.