UPDATE: Morgan Stanley Reiterates Overweight Rating, Removes PT on TransDigm Group Following F1Q14 Beat & Raise

In a report published Wednesday, Morgan Stanley analyst John D. Godyn reiterated an Overweight rating on TransDigm Group TDG, but removed the $185.00 price target. In the report, Morgan Stanley noted, “Though we called for an aftermarket driven beat in our preview, results exceeded even our bullish expectations. Specifically, commercial aftermarket grew 7.5% vs. MSe of 6.5% and defense grew 14% vs. MSe of ~0%, posting a major surprise. TDG also increased F2014 Adj. EPS guidance to $7.50 from $7.16 vs. prior MSe of $7.75 and consensus of $7.44. Given that pro-forma commercial OEM, commercial aftermarket and defense growth assumptions remain unchanged despite mgmt's optimistic qualitative outlook on both commercial and defense aftermarket, we believe there is further upward revision potential even without ‘surprise' M&A.” TransDigm Group closed on Tuesday at $171.92.