TransDigm (TDG) Continues Lower as Davenport Downgrades Intraday
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Shares of TransDigm (NYSE: TDG) have now pushed to session lows as an analyst at Davenport has just downgraded the stock from Buy to Neutral. The firm also lowered its price target to $42.
The firm said its downgrade was "driven by an ~40c/share increase in 2010 interest expense from the recent $425 debt offering, but more importantly, our belief that a 2H'10 return in commercial aftermarket demand is more wishful thinking than reality." Davenport points out that as the major airlines are still falling short on covering their costs, it believes the "next 6-12 months will see one or all of the following bad-for-aftermarket trends: lower in-service utilization rates, more aircraft groundings, mergers, or outright failures."
The stock is now down about 2.3% to $40.35.
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