TransDigm price target lowered to $1,500 from $1,600 at Susquehanna

Susquehanna analyst Charles Minervino lowered the firm’s price target on TransDigm (TDG) to $1,500 from $1,600 and keeps a Neutral rating on the shares. The firm updated its model following Q3 results. The company said the lower sales guidance is attributable to reduced Commercial OEM expectations, with guidance for this end market being reduced to the range of flat-to-low-single-digit year-over-year growth. The primary drivers for this reduced outlook are lower Commercial OEM build rates versus the company’s expectations, along with inventory destocking which is a headwind for several suppliers across the Commercial supply chain.