TransDigm Earnings: Aviation Rebound to Continue Boosting Profit Growth; Fair Value Up 21% to $920

TransDigm's fiscal 2023 results and expectations for more double-digit growth in 2024 and beyond outstripped our expectations for how quickly this wide-moat manufacturer of specialty aircraft parts is raising sales and profits with the rebound in aircraft utilization and manufacturing. We have increased our forecast of its profitable participation in the ongoing rebounds in its key markets and increased our fair value estimate approximately 21% to $920 per share from $760. This represents 33 times our fiscal 2024 earnings estimate and 18 times our estimate of 2024 EBITDA.