Stifel Nicolaus analyst Peter McNally has maintained their bullish stance on TRCS stock, giving a Buy rating on February 19.
Peter McNally has given his Buy rating due to a combination of factors that highlight Tracsis’s strategic progress and financial resilience. Despite facing short-term challenges, such as modest revenue growth and softened EBITDA margins due to CP7 headwinds and external cost inflation, Tracsis has demonstrated significant advancements in its RTS division. The company has secured a major multi-year PAYG Tap Converter contract, launched the Hopsta mobile app with ScotRail, and achieved the first intercity deployment of TRACS Enterprise in the UK, which are pivotal in strengthening its position in smart ticketing and expanding its market reach.
Furthermore, Tracsis’s entry into the US market with the full deployment of Train Dispatch and the expansion of its Remote Condition Monitoring offering in North America underscore its long-term growth potential. The company’s robust cash generation, with a strong liquidity position of £22.1m, provides the financial flexibility to invest in strategic initiatives despite uncertainties in UK rail procurement and North America contract timelines. These factors, combined with a reduced DCF-based target price, support McNally’s Buy rating as Tracsis is well-positioned for future growth.
In another report released on February 19, Berenberg Bank also reiterated a Buy rating on the stock with a p1,150.00 price target.
Based on the recent corporate insider activity of 8 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TRCS in relation to earlier this year.