J.P. Morgan Initiates Coverage Of TransDigm With An Overweight Rating

J.P. Morgan is initiating coverage of TransDigm Group Inc. (NYSE: TDG) Group with an Overweight rating.

“TransDigm owns a stable of attractive businesses, marked by the proprietary nature of their products and the resulting strong pricing power and industry leading margins,” J.P. Morgan writes.

“The commercial aerospace aftermarket contributes ~40% of sales, providing both an attractive long-term growth outlook and cyclical entry point.”

J.P. Morgan noted that it does not believe that TransDigm's strategy is sustainable forever, “but we see it remaining viable for some time to come.”

TransDigm currently trades at $70.75.