Auriga Reiterates a 'Buy' on TransDigm (TDG); Acquisition of AmSafe for Likely to Boost FY12 Adjusted EPS By $0.30

Auriga reiterates a 'Buy' on TransDigm (NYSE: TDG) price target of $110.00.

Auriga analyst said, "Friday after the close, TransDigm announced it entered into a definitive agreement to acquire AmSafe Global Holdings, Inc., which is a privately held supplier of restraint equipment used in commercial aerospace, military, and commercial ground transportation markets. The acquisition will be completed with a mix of debt / cash (details not disclosed) for $750 million; AmSafe had 2011 revenue of $260 million. We view the acquisition favorably as it is levered to commercial markets, and suspect it will add more than 5% to our current 2012 estimates. As such, we remain confident the long-term growth story remains intact, and reiterate our rating and price target."

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 $97.06 yesterday.

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