TransDigm initiated with a Buy at Citi

Citi analyst Jason Gursky initiated coverage of TransDigm with a Buy rating and $1,042 price target. The analyst is constructive on the company’s revenue and earnings visibility, sayin 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. TransDigm’s focus on proprietary products and “lean” operations affords pricing power and margin expansion potential, the analyst tells investors in a research note.