KeyBanc Lifts TransDigm (TDG) Target on MRO and Defense Tailwinds

TransDigm Group Incorporated (NYSE:TDG) ranks among the best momentum stocks to buy. On July 2, KeyBanc maintained its Overweight rating on TransDigm Group Incorporated (NYSE:TDG), while increasing its price objective on the aerospace components manufacturer from $1,500 to $1,700. The price target increase is in line with KeyBanc’s survey-based evidence of a more robust aftermarket environment and rising demand for defense products worldwide.

The firm’s underlying estimates show robust year-over-year growth, according to KeyBanc analyst Michael Leshock, emphasizing TransDigm’s capacity to profit from the continuation of a strict maintenance, repair, and operations (MRO) environment. KeyBanc believes there are chances for further price adjustments as a result of the strict MRO conditions.

Founded in 1993 as a result of the leveraged buyout of four industrial aerospace companies, TransDigm Group Incorporated (NYSE:TDG) is an aerospace manufacturing corporation that operates through three primary business sectors: Power & Control, Airframe, and Non-aviation. The company specializes in the development and manufacturing of engineered aircraft components.

While we acknowledge the potential of TDG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

Disclosure: None.