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Wells Fargo upgrades TransDigm on capital deployment opportunity

Wells Fargo upgrades TransDigm on capital deployment opportunity

Wells Fargo upgraded TransDigm (TDG) to Overweight from Equal Weight with a price target of $1,500, up from $1,375. The firm sees a “significant capital deployment opportunity” not currently priced into the stock. It also does not view the Department of Government Efficiency as a meaningful risk to TransDigm. Wells estimates the company can deploy $5B-$6B of capital per year toward acquisitions, dividends and repurchases, including $2B-$3B of free cash flow and borrowing capacity on incremental EBITDA.

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