12:14 PM EDT, 05/08/2024 (MT Newswires) -- TransDigm Group's ( TDG ) commercial aftermarket exposure provides long-term visibility for earnings growth as aircraft demand remains strong against constrained supply, Morgan Stanley said in a note to clients Wednesday.

"We view TransDigm ( TDG ) as a 'best in breed' US Industrial company as its margin profile largely tops the industry, it has exposure to in demand and growing end markets, and has executed through COVID-19 and a challenging macro environment without missing a beat," Morgan Stanley said.

Morgan Stanley remains positive on all of TransDigm's ( TDG ) primary end markets.

Defense performance in fiscal year 2024 has been surprisingly good, driving the company to now expect defense revenue outlook growth in mid-teens percentage, from between high-single-digit and low-double-digit.

Morgan Stanley raised its price target for TransDigm ( TDG ) to $1,550 from $1,275 and reiterated its overweight rating.

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