TransDigm (TDG) PT Raised to $1,300 at Stifel
Stifel analyst Bert W. Subin raised the price target on TransDigm (NYSE: TDG) to $1,300.00 (from $1,200.00) while maintaining a Hold rating.
The analyst commented: "TransDigm reported adj. EPS of $7.99 vs the $7.42 consensus on sales of $1.92B, vs $1.88B. The beat was driven by the 53.2% adj. EBITDA margin, which was largely a result of aftermarket strength (interestingly more defense-related). TransDigm noted a still healthy setup for OEM deliveries and called out freight as a core headwind to commercial aftermarket in the quarter (the 8% growth headline was lower than expected). Management updated guidance, halfway through its fiscal year, predominantly to reflect strength in defense (now expecting +mid-teens growth vs HSD-LDD), while keeping guidance unchanged on commercial aftermarket and OEM. We are so far not seeing margin degradation from a shift toward OEM, and we anticipate that impact will be delayed as aftermarket sales (both commercial and defense) seem well-positioned through year-end. We maintain our Hold rating but increase our target price to $1,300."