KeyBanc Downgrades TransDigm (TDG) to Sector Weight

KeyBanc downgraded TransDigm (NYSE: TDG) from Overweight to Sector Weight. Analyst Michael F. Ciarmoli thinks price pressure is poised to increase.

"Last week, we attended the MRO Americas conference to better assess commercial aerospace AF trends. Our formal meetings/flash survey results confirmed our belief that structural changes in the AF, including the rise of used/serviceable material, asset pooling, more OEM participation and pricing pressure, will weigh on growth, perhaps disappointing vs. expectations. Spending trends may recover in 1Q16, but we think these structural shifts will have a lasting impact in coming periods. Accordingly, we are downgrading TDG to SW from OW given its high reliance on pricing and the overall AF," said Ciarmoli.

For an analyst ratings summary and ratings history on TransDigm click here. For more ratings news on TransDigm click here.

Shares of TransDigm closed at $225.16 yesterday.

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