24.04.2007
Source: AC Research
Rating: buy
transtec buy
Westerburg (aktiencheck.de AG) - Henning Wagener, analyst of AC Research, continues to rate the shares of transtec (ISIN DE0007241424/ WKN 724142) as "buy".
In the past, transtec AG used to exclusively sell hardware. However, since the beginning of its realignment in 2005, the company has been able to position itself as a supplier of complex IT-solutions. At operative level, business is divided into the segments Customized Hardware and Complex IT-solutions. In its Customized Hardware segment, the company runs the hardware business under the brands transtec (direct distribution) and Lynx (indirect distribution). In its Complex IT-solutions segment, particularly demanding solutions that require a lot of explanation are sold to professional customers.
The group aims to massively increase the number of complex IT-solutions on offer in the coming years. This strategy seems promising, especially since a further increase in complex IT-solutions will lead to additional demand for consulting on part of the customers. With this background, the analysts anticipate a massive increase of business in the high-margin service segment. This will probably have a positive effect on transtec’s achievable margins. The analysts see the fast technological changes as a risk factor to business development. If transtec is late in picking up new trends, this might have a significant negative impact on business development.
The analysts have evaluated transtec AG’s stock by way of two different valuation-models. In the course of their peer-group comparison, the analysts of AC Research have arrived at an average fair value of EUR 7.58 for transtec’s stock. The fair value deduced from their DCF-model amounts to EUR 7.03. In order to calculate their price target, the analysts of AC Research have weighed the result of their peer-group comparison with 25% and the result of the DCF-model with 75%. This yields a fair value of EUR 7.17 for transtec’s stock. Accordingly, the analysts issue a 12-months price target of EUR 7.15 for the shares. Based on current share price levels of EUR 5.75, this implies an upside potential of 24.35%.
Consequently, the analysts of AC Research continue to rate the shares of transtec as "buy". (Analysis of April 24, 2007) (24.04.2007/ac/a/nw).
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Source: AC Research
Rating: buy
transtec buy
Westerburg (aktiencheck.de AG) - Henning Wagener, analyst of AC Research, continues to rate the shares of transtec (ISIN DE0007241424/ WKN 724142) as "buy".
In the past, transtec AG used to exclusively sell hardware. However, since the beginning of its realignment in 2005, the company has been able to position itself as a supplier of complex IT-solutions. At operative level, business is divided into the segments Customized Hardware and Complex IT-solutions. In its Customized Hardware segment, the company runs the hardware business under the brands transtec (direct distribution) and Lynx (indirect distribution). In its Complex IT-solutions segment, particularly demanding solutions that require a lot of explanation are sold to professional customers.
The group aims to massively increase the number of complex IT-solutions on offer in the coming years. This strategy seems promising, especially since a further increase in complex IT-solutions will lead to additional demand for consulting on part of the customers. With this background, the analysts anticipate a massive increase of business in the high-margin service segment. This will probably have a positive effect on transtec’s achievable margins. The analysts see the fast technological changes as a risk factor to business development. If transtec is late in picking up new trends, this might have a significant negative impact on business development.
The analysts have evaluated transtec AG’s stock by way of two different valuation-models. In the course of their peer-group comparison, the analysts of AC Research have arrived at an average fair value of EUR 7.58 for transtec’s stock. The fair value deduced from their DCF-model amounts to EUR 7.03. In order to calculate their price target, the analysts of AC Research have weighed the result of their peer-group comparison with 25% and the result of the DCF-model with 75%. This yields a fair value of EUR 7.17 for transtec’s stock. Accordingly, the analysts issue a 12-months price target of EUR 7.15 for the shares. Based on current share price levels of EUR 5.75, this implies an upside potential of 24.35%.
Consequently, the analysts of AC Research continue to rate the shares of transtec as "buy". (Analysis of April 24, 2007) (24.04.2007/ac/a/nw).
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