UPDATE: Topeka Capital Markets Initiates TransDigm Group at Hold on Valuation

Topeka Capital Markets initiated coverage on TransDigm Group

with a Hold rating and a $144 price target. Topeka Capital Markets commented, "We are initiating coverage on TransDigm with a Hold rating. TransDigm is one of the most profitable aerospace components manufacturers in the industry with greater than 50% gross margins and profit margin exceeding 20%. While we recognize TransDigm has had a banner year through its three fiscal quarters, we are staying on the sidelines given current valuation, a weak defense outlook, and our forecast for slowing aftermarket growth in 2013." TransDigm Group closed at $141.04 on Wednesday.