UBS Maintains a 'Buy' on TransDigm (TDG); Rising Estimates for AmSafe accretion
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Price: $1,256.90 +0.85%
Rating Summary:
18 Buy, 16 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
18 Buy, 16 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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UBS maintains a 'Buy' on TransDigm (NYSE: TDG) price target raised from $110 to $130.
UBS analyst says, "We see AmSafe being significantly accretive even assuming just modest deleveraging and our revised EPS estimates put us well ahead of consensus. Despite what has been a strong run since announcing AmSafe, we still see further upside as TDG prices in the accretion that we anticipate."
"We believe that AmSafe’s margins will improve by several hundred basis points in each of the next several years driven by strong incremental margins on higher volumes, improved productivity and higher pricing. AmSafe’s revenue/employee at $144K is more than 50% below TDG leaving room for significant upside. While we think TDG will have to absorb $5-10M in purchase accounting amortization, we believe it will identify cost saves to offset, as it did with McKechnie."
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 $116.35 yesterday.
UBS analyst says, "We see AmSafe being significantly accretive even assuming just modest deleveraging and our revised EPS estimates put us well ahead of consensus. Despite what has been a strong run since announcing AmSafe, we still see further upside as TDG prices in the accretion that we anticipate."
"We believe that AmSafe’s margins will improve by several hundred basis points in each of the next several years driven by strong incremental margins on higher volumes, improved productivity and higher pricing. AmSafe’s revenue/employee at $144K is more than 50% below TDG leaving room for significant upside. While we think TDG will have to absorb $5-10M in purchase accounting amortization, we believe it will identify cost saves to offset, as it did with McKechnie."
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 $116.35 yesterday.
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