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Morgan Stanley Reiterates Underweight Rating, $117 PT on TransDigm Group

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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.

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: Morgan StanleyAnalyst Color Reiteration Analyst Ratings

 

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