Barclays Maintains an 'Overweight' on TransDigm (TDG); Overreaction Provides Rare Opportunity
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Price: $1,188.01 -2.1%
Rating Summary:
20 Buy, 11 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
20 Buy, 11 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Barclays maintains an 'Overweight' on TransDigm (NYSE: TDG) price target of $120.00.
Barclays analyst says, "Yesterday, TransDigm reported Q4 2011 earnings, solidly beating consensus estimates and giving FY2012 guidance that was above consensus for both sales and EPS at their respective midpoints. After opening up 3-4% and trading above $100 for the first time ever, the stock subsequently declined sharply. We think the drop-off was largely related to comments on the call from management suggesting "considerable uncertainty" about the economy for 2012; the stock closed down 3.7% (vs S&P 500 down 1.7%)."
"We think the Street misinterpreted comments around 2012 guidance that were meant to be "conservative" as instead suggesting "weakening". This is not our view; in fact, we think the company's aftermarket sales growth forecast of 10% assumes little inventory restocking expansion (we think this would be a likely occurrence in the third year of a traffic up-cycle)."
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 $93.57 yesterday.
Barclays analyst says, "Yesterday, TransDigm reported Q4 2011 earnings, solidly beating consensus estimates and giving FY2012 guidance that was above consensus for both sales and EPS at their respective midpoints. After opening up 3-4% and trading above $100 for the first time ever, the stock subsequently declined sharply. We think the drop-off was largely related to comments on the call from management suggesting "considerable uncertainty" about the economy for 2012; the stock closed down 3.7% (vs S&P 500 down 1.7%)."
"We think the Street misinterpreted comments around 2012 guidance that were meant to be "conservative" as instead suggesting "weakening". This is not our view; in fact, we think the company's aftermarket sales growth forecast of 10% assumes little inventory restocking expansion (we think this would be a likely occurrence in the third year of a traffic up-cycle)."
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 $93.57 yesterday.
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