TDG - TransDigm rated Buy in new research coverage at Citibank

2023-07-06 11:31:36 ET

TransDigm on Wednesday was rated as a Buy in new research coverage by analysts at Citibank. They said the maker of aircraft electronics is poised for gains amid rebounding demand for aircraft.

“We are constructive on revenue and earnings visibility as global air traffic is set to move beyond 2019 levels, production rates for new aircraft are poised to move significantly higher, and defense budgets continue to grow given the perceived threat environment,” Jason Gursky, analyst at Citibank, said in a July 5 report.

Citibank set a price target of $1,042 a share on TransDigm ( NYSE: TDG ), applying a forward 12-month multiple of 18.5 times EBITDA. A projected 40% premium to the Standard & Poor’s 500 stock index ( SP500 ) is in line with historical averages, according to the bank.

Seeking Alpha contributor Vader Capital rates TransDigm ( TDG ) as a Buy, based on its strength in aircraft parts . Columnist Leo Nelissen has a Hold rating on TransDigm ( TDG ) because of its current valuation .

More about TransDigm

• Sens. Warren, Sanders call for probe into claims of defense-contractor price gouging
• TransDigm rejigs top brass: COO to retire, new CFO named

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