TransDigm price target raised to $1,684 from $1,667 at Goldman Sachs

Goldman Sachs raised the firm’s price target on TransDigm (TDG) to $1,684 from $1,667 and keeps a Buy rating on the shares after its Q4 earnings beat. The company’s aerospace aftermarket growth rate has moved below the industry average, but nothing has changed in the TransDigm model, the analyst tells investors in a research note. It makes sense for the aftermarket growth rate to have decelerated when others didn’t because it has low engine exposure and grew much faster coming out of the pandemic, the firm notes, adding that TransDigm can grow its multi-year bottom line EPS by 20%, and it is now one of the less expensive high-quality / aftermarket-rich aerospace suppliers in the market on a relative basis.