Deutsche Bank Upgrades TransDigm (TDG) to Buy; Cash King

Deutsche Bank upgraded TransDigm (NYSE: TDG) from Hold to Buy with a price target of $175.00 (from $150.00).

While valuation was a concern in the past the firm has turned their attention to: 1) aftermarket comps get easier, 2) deal flow likely picks up, and 3) the 500bps relative underperformance YTD gives a brief opening.

The firm notes management does not let the balance sheet go to waste and said despite concerns that the business model may be under pressure, they see further runway in the acquisitive business model and believe now as a good time to reengage in the stock.

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 $143.85 yesterday.

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