Donald Trump Has Become To Aerospace What Hillary Clinton Was To Pharma

Citron Research released a Friday memo warning of politically-induced turbulence in the aerospace industry particularly expected to affect TransDigm Group Incorporated TDG.

President-elect Donald Trump has already taken efforts to lower prices for military aircraft and laid pre-inauguration groundwork through meetings with Boeing Co BA and Lockheed Martin Corporation LMT. The two companies subsequently vowed to lower prices for the Air Force One fleet and the F-35 fighter jet program.

Citron analyst Andrew Left expects TransDigm to be swept in the draft. @CitronResearch tweeted: “Citron publishes the first timely story of the Trump Presidency. Transdigm $TDG has a target on its back. We expose the gouging of the USA.”

Left noted in the memo that the cost cuts of Boeing will heavily affect subcontractor TransDigm, which will also take a more direct hit in its contract with the Department of Defense.

Left predicted the targeting of TransDigm particularly based on its “egregious” price raises and a business model that has accrued a “sky-high debt load.”

TransDigm, he said, could soon become the Valeant Pharmaceuticals Intl Inc VRX of the aerospace industry.

As of this report, TransDigm was trading down 10 percent on the day.