5 Stocks to Invest In Now According to David Thomas’s Atalan Capital

4. TransDigm Group Incorporated (NYSE:TDG)

Atalan Capital’s Stake Value: $164.26 million

Percentage of Atalan Capital’s 13F Portfolio: 10.24%

Number of Hedge Fund Holders: 63

TransDigm Group Incorporated (NYSE:TDG) deals in the production and supply of aircraft components and operates through its segments: Power and Control, Airframe, and Non-Aviation. 63 hedge funds were long TransDigm Group Incorporated (NYSE:TDG) at the close of the third quarter, showing an upward trend from the previous quarter where 57 hedge funds held stakes in the company. As of September, David Thomas’s Atalan Capital owns 263,000 shares in TransDigm Group Incorporated (NYSE:TDG) with a value of $164.26 million.

On January 7, Truist analyst Michael Ciarmoli upgraded TransDigm Group Incorporated (NYSE:TDG) to ‘Buy’ from ‘Hold’, upping the price target from $600 to $786. The analyst noted that the company is well-positioned to benefit from increased demand in commercial aerospace aftermarket parts and that TransDigm Group Incorporated (NYSE:TDG) can continue to expand its margins as both prices and volumes report an increase.

Investment management firm Vulcan Value Partners discussed TransDigm Group Incorporated (NYSE:TDG) in its Q2 2021 investor letter. The fund said:

“TransDigm Group Inc., another material contributor during the quarter, is an aerospace manufacturer providing highly engineered, niche components for use on commercial and military aircraft. The vast majority of the company’s profits come from aftermarket sales. Its business was impacted by the global pandemic; however, the company has been able to maintain margins despite strong revenue headwinds, and it continues to generate strong free cash flow.”