Transcat down after Oppenheimer downgrade on dour annual forecast

Transcat

29/01/2025 18:41

** Shares of calibration service provider Transcat  TRNS.O 
down as much as 8.5% to $79.19 
    ** Brokerage Oppenheimer downgrades stock to "perform" from
"outperform", removes PT
    ** Company posted Q3 results below expectations and lowered
FY25 organic service growth forecast after market close on
Monday, sending shares down as much as 24.2% on Tuesday
    ** Brokerage cites weaker forecast, reduced growth and
margin improvement expectations, and impaired management
credibility behind downgrade
    ** Says investors lost confidence in the company's growth
stability, even as the company expects to return to historical
growth rates in FY26, as reduced forecast implies organic
service revenue decline in present quarter
    ** Three of five brokerages rate the stock "buy", two
"hold"; with a median PT of $106, according to data compiled by
LSEG
    ** TRNS fell ~3% in 2024

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com;))