Goldman Sachs Upgrades TransDigm (TDG) to Buy On Strong Margins, Compounding

Goldman Sachs upgraded TransDigm (NYSE: TDG) from Neutral to Buy with a price target of $144, suggesting 21% upside.

The firm said TransDigm "dominates its specialized niches of the aircraft" which creates pricing power. Coupled with its low labor and capital intensity gives it the highest margins in Aerospace.

Investors can benefit from the effects of compounding - "the legacy business should continue to generate cash, as should the acquired assets, and we expect that cash will be used to repeat the process."

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 $119.07 yesterday.

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