TransDigm Group Incorporated (TDG) Removed From Jefferies' Franchise Picks List, Price Target Slashed

TransDigm Group Incorporated (NYSE:TDG) is among the 12 Best Defense Stocks to Buy Right Now. On September 17, Jefferies analyst Sheila Kahyaoglu lowered the stock’s price target to $1,490 from $1,650, while maintaining a Buy rating for its shares. The firm also removed the company from its Franchise Picks list.

Kahyaoglu told investors in a research note that the company’s EBITDA multiple had declined 4% since the end of 2023, amid lower after-market volumes. However, the analyst highlighted that TransDigm Group Incorporated (NYSE:TDG) has $6 billion of capacity for acquisitions, which could be 3% accretive to earnings at a 14x transaction multiple.

Overall, Wall Street analysts maintain a positive outlook for the stock, with a consensus Buy rating and a one-year average price target of $1,596.56, representing an upside potential of 25% from the closing price of September 18.

TransDigm Group Incorporated (NYSE:TDG) manufactures engineered aircraft components for commercial and military aircraft.

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