UBS Maintains a 'Buy' on TransDigm (TDG); Running Ahead With More to Come
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Price: $1,200.35 +1.69%
Rating Summary:
18 Buy, 16 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
18 Buy, 16 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UBS maintains a 'Buy' on TransDigm (NYSE: TDG), PT increased from $90 to $105.
UBS analyst says, "We are raising our EPS estimates on faster than expected progress at McKechnie, where we now think profit doubles in two years. Beyond our revised estimates, we see further upside on continued aftermarket strength and capital deployment. Despite its recent outperformance, TDG still only trades at a modest 15% premium to its peer group."
"Additional acquisitions increasingly likely - We do not expect TDG to sit on its large cash balance, likely close to $12 per share by year end, for long and believe that additional acquisitions are increasingly likely given McKechnie progress. We estimate an additional $0.50-0.75 in earnings power, currently not in our estimates, from using excess cash towards additional acquisitions."
For more ratings news on TransDigm click here and for the rating history of TransDigm click here.
Shares of TransDigm closed at $93.75 yesterday.
UBS analyst says, "We are raising our EPS estimates on faster than expected progress at McKechnie, where we now think profit doubles in two years. Beyond our revised estimates, we see further upside on continued aftermarket strength and capital deployment. Despite its recent outperformance, TDG still only trades at a modest 15% premium to its peer group."
"Additional acquisitions increasingly likely - We do not expect TDG to sit on its large cash balance, likely close to $12 per share by year end, for long and believe that additional acquisitions are increasingly likely given McKechnie progress. We estimate an additional $0.50-0.75 in earnings power, currently not in our estimates, from using excess cash towards additional acquisitions."
For more ratings news on TransDigm click here and for the rating history of TransDigm click here.
Shares of TransDigm closed at $93.75 yesterday.
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