Transcat price target lowered to $138 from $150 at Craig-Hallum

Craig-Hallum analyst Greg Palm lowered the firm’s price target on Transcat to $138 from $150 and keeps a Buy rating on the shares. Transcat reported mixed results, with a rare top-line miss, the firm notes. Craig-Hallum believes timing as well as a de-emphasis of lower margin distribution sales led to the shortfall. Importantly, margins outperformed again and should continue the upward trajectory, which helped offset the revenue miss, adds the firm. While the reaction in the stock isn’t all that surprising given the valuation, Craig-Hallum would be using the pullback to build positions.