UPDATE: Goldman Sachs Initiates Neutral, $105 Target on TransDigm
Goldman Sachs initiates coverage on TransDign Group (NYSE: TDG) with a Neutral rating and $105 price target as it likes the company's unique business model but has concerns on near-term headwinds.
Goldman Sachs comments, "We expect TDG to benefit from the Aerospace trends that drive our Attractive view of the sector, including Boeing and Airbus production rate increases and growth in air traffic, as well as its own pricing power. However, TDG also has exposure to a shrinking Defense pie, and we have concerns the pace of growth in commercial aftermarket could be slower than high expectations."
TDG closed at $95.14 per share on Thursday.
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