Why Shares of TransDigm Group Are Down Today
Shares of TransDigm Group (NYSE: TDG) traded down more than 13% on Wednesday afternoon after the company was downgraded to hold from buy at Vertical Research. The aerospace component supplier is likely in for at least a couple of down quarters as airlines cut back on spending due to the COVID-19 pandemic.
Airlines are among the businesses hit hardest by the COVID-19 pandemic, with travel demand drying up as the virus has spread. Carriers have responded by cutting flights and grounding jets, putting pressure on new plane sales from Boeing and Airbus as well as suppliers making components for those planes and providing spare parts to service the existing fleet.
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Source Fool.com
