RBC Capital Raises Price Target on Transdigm Group (TDG) Following 2Q Results

RBC Capital reiterated an Outperform rating on TransDigm Group (NYSE: TDG), and raised the price target to $271.00 (from $253.00), following the company's 2Q earnings report. TDG reported adjusted EPS of $2.86, coming in ~10% ahead of consensus estimates. The better than expected topline in the quarter came from commercial aftermarket, which was +13% in Q2 following float flat growth in Q1 with book-to-bill above 1x. FY16 guidance for adj EBITDA and EPS rose 2% and 4%, respectively.

Analyst Robert Stallard commented, "TransDigm reported 2Q16 adjusted EPS of $2.86, coming in ~10% ahead of ours/consensus estimates. Sales were up 4.4% y/y organic (improving from the 1% decline last quarter), coming in ~3% ahead of ours/ consensus estimates while adjusted EBITDA beat our estimate by 5%. FY16 guidance for adj EBITDA and EPS rose 2% and 4%, respectively."

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 $249.50 yesterday.

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