As previously reported, Stephens analyst Drew Lipke downgraded TransDigm to Underweight from Equal Weight, with a $230 price target, as he believes structural changes and competition within the commercial aftermarket will drive returns lower in the years ahead.

RBC Capital raised the firm's price target on TransDigm to $1,300 from $1,250 and keeps an Outperform rating on the shares as part of a broader research note previewing Q1 results in the Aerospace & Defense segment. The setup coming into the quarter is challenging, the firm states, with commercial original equipment sales expected to be the primary focus for investors and the high potential for a significant downward revision from Boeing (BA) on full year production rates, the analyst tells investors in a research note. RBC adds that while it expects strong results from commercial aftermarket stocks, the set up hre is also challenged against very elevated expectation. The analyst further states that defense stocks are also likely to remain range bound, and the firm is surprised that the defense sector has not gotten more of a bounce from the recent hostilities in the Middle East.