Analyst Note| Burkett Huey, CFA |
Wide-moat-rated TransDigm Group reported first-quarter 2021 earnings that reflected continued challenges in commercial aerospace and stability in defense. Adjusted diluted earnings per share declined by 59.4% to $1.97 and narrowly beat FactSet consensus estimates. We’re raising our fair value estimate by 2.8% to $553 per share to reflect value creation from the Cobham Aero Connectivity acquisition and the time value of money, though these increases are partially offset by a slightly lower organic commercial aerospace revenue forecast. We view shares as roughly fairly valued.