This week has been a busy and eventful one for Via Transportation (VIA +6.06%), and it's only Wednesday. The transport systems company's share price rose by 6% that trading session, thanks to a bullish analyst note centered on Via's latest acquisition.
Downtown bound
That note was authored by Scott Berg of Needham, who reiterated his existing buy recommendation on Via and his $55 per share price target. That level is a robust 72% above the most recent closing stock price.
Image source: Getty Images.
It wasn't a coincidence that Berg's update came on the heels of Via's new asset purchase. On Monday, Via announced that it had acquired Downtowner, a peer transport technology specialist for an undisclosed sum.
The company described Downtowner's platform as being "a sophisticated, flexible, software-powered transit solution that has been adopted by many of the most iconic destination cities across the U.S." It did not disclose the price it paid for the privately held company.
According to reports, Berg waxed bullish about the acquisition, saying that Downtowner's system complements Via's platform. In his view, it provides Via with new functionalities to handle seasonal demand, particularly in the ski destinations that are Downtowner's wheelhouse.
NYSE: VIA
Key Data Points
Extended ride
While we can't accurately gauge the effect the Downtowner acquisition will have on Via's fundamentals without knowing the price and key terms of their deal, it appears quite synergistic at first glance. I'd imagine the former's highly specialized solutions will enhance Via's solutions deployed in other vacation destinations, making the company that much more competitive in such locales.
