UPDATE: Goldman Sachs Upgrades TransDigm Group to Buy

Goldman Sachs raises its rating on TransDigm Group TDG and raises the price target to $144 from $137 as the company has the highest margins in Aero and the will to compound. Goldman Sachs comments, "TransDigm defines the appeal of investing in the Aerospace supply chain. We believe it dominates its specialized niches of the aircraft, resulting in superior pricing power, which when combined with its low labor and capital intensity makes it the most profitable and cash generative company we cover. It has proven expertise in deploying that cash to add assets with similar characteristics. We believe investors can benefit from the effects of compounding - the legacy business should continue to generate cash, as should the acquired assets, and we expect that cash will be used to repeat the process." TDG closed at $119.07 on Thursday.