TransDigm Earnings: Airlines Driving Strong Aftermarket Parts Demand; Valuation Up 4% to $1040

TransDigm's fiscal second-quarter 2024 results once again demonstrated how well this wide-moat manufacturer of specialty aircraft parts is faring with the postpandemic rebound in aircraft utilization and manufacturing. We have increased our fair value estimate to $1,040 per share from $1,000, primarily due to the time value of money and an uptick in our near-term forecast for original equipment manufacturer sales to the defense market. This represents 31 times our fiscal 2024 earnings estimate and 18 times our estimate of 2024 adjusted EBITDA.