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UPDATE: Bank of America Merrill Lynch Reiterates Neutral Rating, Lowers PO on TransDigm Group

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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

DateFirmActionFromTo
Jan 2017SunTrust Robinson HumphreyInitiates Coverage OnBuy
Jan 2017RBC CapitalInitiates Coverage OnOutperform
Dec 2016Deutsche BankMaintainsBuy

View More Analyst Ratings for TDG
View the Latest Analyst Ratings

Posted-In: Bank of America Merrill LynchAnalyst Color Price Target Analyst Ratings

 

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