AC Research - transtec Upgrade
21:57 27.04.06
Henning Wagener, an analyst of AC Research, upgrades his rating on the shares of transtec (ISIN DE0007241424/ WKN 724142) from "accumulate" to "buy".
In the course of its more than 25 years in business, transtec AG developed into a significant international supplier of professional IT-systems. After high losses in the years 2003 and 2004, the company managed a successful restructuring. At operative levels, the company achieved the targeted turnaround in the late financial year 2005 after the execution of massive cost reduction measures, even though sales declined slightly.
In the recent past, transtec successfully implemented its own product brands and thus build a strong B-Brand basis. Owing to its broad product portfolio, the company is usually able to address all the customers' need itself. In this way, transtec has an advantage over the smaller suppliers in the sector, which are mostly specialised. In the course of a consequent marketing of the company's B-Brand, the analysts of AC Research still see considerable sales and earnings growth potential for transtec in the coming years. In this, the company is likely to grow at the expense of smaller competitors. The experts regard the ongoing high intensity of competition and the massive pricing pressure on transtec's target markets as the main risk factors to further business development.
The shares of transtec AG have been evaluated by two different valuation models. In the course of a peer-group comparison, the analysts of AC Research arrived at an average fair value of EUR 4.55 per transtec share. By applying their DCF-model, they arrived at a fair value of EUR 5.20 per share. In fixing their price target, the analysts weighed the result of their peer-group comparison by 25% and the findings of the DCF-model by 75%. Thus they arrived at a fair value of EUR 5.04 for transtec AG's stock. In consequence, they fixed a 12-months price-target of EUR 5.10 for the share. Based on current share price levels of EUR 4.20, this implies an upside potential of 21.43%.
As a result, the analysts of AC Research upgrade their rating on the shares of transtec from "accumulate" to "buy".
Quelle: aktiencheck.de
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