Transcat price target raised to $112 from $103 at Craig-Hallum

Craig-Hallum raised the firm’s price target on Transcat to $112 from $103 and keeps a Buy rating on the shares. Last month, Transcat announced the acquisition of Axiom Test and Equipment, a leading provider of electronic test equipment rentals. Strategically, this increases exposure to the higher margin rental space and financially is attractive given solid accretion levels, the firm says. Importantly, Craig-Hallum believes it was acquired at a very reasonable purchase price, which again highlights the attractive opportunity with M&A. The firm is raising estimates and price target to account for the acquisition.