Deutsche Bank Reiterates Buy Rating on TransDigm (TDG)

Deutsche Bank analyst Scott Deuschle reiterated a Buy rating and $1,524.00 price target on TransDigm (NYSE: TDG).

The analyst comments "TransDigm hosted an investor day in NYC on June 26th—the first since 2018. Overall, the day focused on emphasizing that nothing in the business has materially changed since the last investor day, with significant runway ahead, and a management team that as always remains focused on applying the value drivers of Price, Productivity, and Profitable new business (the 3 Ps). Another theme during the day focused on the growing productivity benefits from investments in automation, which the company has been increasingly successful in applying throughout the business. In terms of financial targets, management didn't offer many, apart from noting that it should continue to be able to grow EBITDA 10-12%/yr organically, with acquisitions and financial leverage enabling the company to continue to deliver "private-equity like returns with the liquidity of the public market". On M&A, management noted that the pipeline remains strong for the second half of the year, with momentum likely to be sustained into 2025. The company clearly prefers to deploy capital toward M&A, but could look to do additional special dividends or potentially repurchases as well. Finally, the company made some positive remarks on OEM contract repricing. It also discussed some of the challenges in the investment castings industry. Additionally, TransDigm noted how its definition of proprietary differs from some other companies in the industry."

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 $1320.36 yesterday.

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