Transcat price target raised to $119 from $112 at Craig-Hallum

Craig-Hallum raised the firm’s price target on Transcat to $119 from $112 and keeps a Buy rating on the shares. The firm notes quarterly results were solid, highlighted by margin strength across both sides of the business. While this has been an ongoing tailwind for some time, the outperformance was notable this past quarter, especially within its Distribution segment. Craig-Hallum believes this has been boosted by the exit or de-emphasis of certain lower margin sales, along with a positive mix shift towards rentals. Looking ahead, it is “encouraged” by the growth outlook, which will be driven by continued strength in Service and likely additional M&A.