TransDigm (TDG) reported better-than-expected fiscal Q4
results, with a "constructive" initial 2027 guide, RBC Capital Markets said in a Tuesday note.
The guide was just ahead of consensus adjusted EBITDA and revenue, with the end market outlook reflecting conservatism and normalization of aftermarket growth, the report said.
The note also said the firm struck a "constructive" M&A tone, with focus on aerospace and defense markets seen as positive.
"We continue to view M&A as the most important potential catalyst, underpinned by continued execution in its base business," the report said.
The note said the company is poised to participate in a "robust" M&A landscape, backed by some $10 billion in M&A capacity.
RBC maintained its sector perform rating on the stock but raised its price target to $1,300 from $1,200.
Price: 1230.71, Change: +5.17, Percent Change: +0.42
