TransDigm initiated with a Buy at Deutsche Bank

Deutsche Bank initiated coverage of TransDigm with a Buy rating and $1,001 price target. In 30 years, the company has grown its EBITDA from $10M to $3.37B by applying a consistent strategy which focuses on the acquisition of proprietary sole-source aerospace businesses with significant aftermarket content and then deploying the “three Ps” of price, productivity, and profitable new business, the analyst tells investors in a research note. The stock also has a significant and growing balance sheet optionality and trades at a reasonable valuation relative to the underlying quality of its assets, the firm added.