Transcat price target raised to $125 from $120 at Oppenheimer

Oppenheimer analyst Martin Yang raised the firm’s price target on Transcat to $125 from $120 and keeps an Outperform rating on the shares. On April 15th, Transcat closed its acquisition of Becnel Rental Tools for $50M, the largest acquisition in its history, the firm notes. Becnel provides rental tools and services primarily used in decommissioning oil wells. Unlike the broader oil and gas sector, this market is highly regulated and resistant to cyclical and oil price fluctuations. The decommissioning market also has a big backlog of wells eligible for services that will create long-term revenue and growth visibility. Management views this acquisition as a long-term, strategic investment due to its geographic expansion, cross-selling opportunities, rental mix, and margin expansion, Oppenheimer adds.