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UK’s rail rethink starting to bear fruit for Tracsis
TRACSIS (TRCS:AIM) 988p
Gain to date: 56.8%
Original entry point: Buy at 630p, 23 December 2020
Investors who followed our Tracsis (TRCS:AIM) pick for 2021 at the end of last year should be sitting pleased, with the share price setting new records in recent days and the stock now up 57% since we said to buy.
We predicted last December that 2021 could be a big one for the transport infrastructure and analytics software company and so it is proving.
The Williams-Shapps Plan for Rail in the UK is promising to be a strategic revolution that should provide Tracsis with excellent opportunities to bring its smart, technology-led innovations to all rail-using stakeholders.
The company has just won a significant expansion deal for its RailHub digital platform that allows railway workers to plan and deliver safer work on the network by providing better and more visual information. The new agreement will double RailHub’s user base to over 30,000 individuals.
As a result of this large enterprise licence win, ongoing growth in rail technology, services and data analytics and a post-Covid recovery in business activity levels in its traffic data and events business units, Tracsis said it expected full year earnings before interest, tax, depreciation and amortisation to exceed market expectations.
SHARES SAYS: We anticipate a good second half of 2021 for Tracsis and believe the stock continues to earn its 20% premium rating to industry averages.