TransAct Technologies (TACT) PT Lowered to $9 at Craig-Hallum

Craig-Hallum analyst TransAct Technologies lowered the price target on TransAct Technologies (NASDAQ: TACT) to $9.00 (from $10.00) while maintaining a Buy rating.

The analyst commented, "We have always known that TACT would not be able to hold on to its 100% market share in the Gaming segment forever, and its only competitor is beginning to come back into the fold. Additionally, when TACT was the only supplier available, OEMs were overbuying printers and building inventory, leading to an oversupply in the industry. While this creates an optically challenging growth profile for FY24, we are encouraged to hear that TACT believes that it will hold on to roughly 15%-20% of incremental market share on a normalized basis, which will allow the Gaming segment to return to growth once it laps what will be very challenging comps."

"We have modestly lowered our price target to account for the headwinds in the Gaming segment but remain encouraged about the business's long-term trajectory. While it was not discussed on the call, we remain excited to see management continue to pursue strategic\ alternatives for the business."

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