UPDATE: Bank of America Merrill Lynch Reiterates Neutral Rating, Lowers PO on TransDigm Group
In a report published Wednesday, Bank of America Merrill Lynch reiterated its Neutral rating on TransDigm Group (NYSE: TDG), but lowered its price objective from $157.00 to $142.00.
BofA Merrill Lynch noted, “TDG's unique positioning distinguishes it from competition and warrants a premium multiple to the market, in our view. 90% of sales are proprietary, 75% are sole sourced and 55% are aftermarket related. We believe this provides TDG with strong margins, strong cash flow, stability and high barriers to entry. This allows TDG to pursue tuck-in acquisitions. Slowing aftermarket growth due to a slowing economy and slowing defense budget growth both present key risks to TDG at this point in time.”
TransDigm Group closed on Tuesday at $131.08.
Latest Ratings for TDG
|Feb 2015||CRT Capital||Maintains||Buy|
|Jan 2015||JP Morgan||Maintains||Neutral|
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