Here Is What Analysts Are Saying About TransDigm Group Incorporated (TDG)

TransDigm Group Incorporated (NYSE:TDG) is among the 9 Defense Stocks That Will Skyrocket. On September 30, BMO Capital initiated coverage of the stock with an Outperform rating and assigned a price target of $1,420 for its shares.

The firm’s analyst, Michael Goldie, sees several growth levers and stated that despite limited visibility, large-scale M&A will eventually materialise, serving as a re-rating catalyst for the stock. BMO Capital further argued that patient investors in the meanwhile can ‘collect healthy distributions’ (including special dividends) with price and productivity driving margin expansion.

In other related news, on September 17, Jefferies analyst Sheila Kahyaoglu also 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.

However, the analyst 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 TransDigm Group Incorporated (NYSE:TDG)’s EBITDA multiple had declined 4% since the end of 2023, amid lower after-market volumes.

That said, the overall sentiment around TDG remains bullish, with Wall Street analysts having a consensus Buy rating for the stock and an average share price upside potential of over 23%.

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

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