KeyBanc Upgrades TransDigm (TDG) to Buy; Pullback Creates Opportunity

KeyBanc upgraded TransDigm (NYSE: TDG) from Hold to Buy with a price target of $95.00.

KeyBanc analyst says, "In the short term, we believe the Company will continue to benefit from the strengthening commercial aerospace cycle and, based on 2Q11 earnings read throughs from its aerospace peers, we believe the likelihood of a beat/lift quarter is high. Our checks continue to indicate that aftermarket demand is high and we believe restocking and increased provisioning for preventive maintenance may prove to be additive in the coming quarters."

"We have consistently viewed TDG as one of the highest quality names in the commercial aerospace sector and view the recent 15% price pullback over the past month (vs. the S&P 500, which declined 12% over the same time period) as an opportunity to initiate or add to existing positions."

For more ratings news on TransDigm click here and for the rating history of TransDigm click here.

Shares of TransDigm closed at $81.85 yesterday.

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