Morgan Stanley Reiterates Underweight Rating, $117 PT on TransDigm Group
In a report published Friday, Morgan Stanley reiterated its Underweight rating and $117.00 price target on TransDigm Group (NYSE: TDG).
Morgan Stanley noted, “We expect TDG to be remain active in M&A, but at >4.0x leverage, TDG is competing against better-capitalized peers (e.g., BEAV, PCP) for similar assets. We think acquisitions will likely be a lower contributor to growth going forward, which combined with modest organic top-line growth (~5%) and increasing industry cost pressures, could put TDG's premium multiple at risk. Reiterate UW and $117 price target.”
TransDigm Group closed on Thursday at $134.83.
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