Analysts' Sentiment Mixed on TransDigm Group (TDG) Despite Steady Industry Outlook

TransDigm Group Inc. (NYSE:TDG) is one of the best defense stocks in Goldman Sachs’ portfolio. During the last two weeks, the company has seen its price target lowered by multiple analysts, although these analysts kept their ratings intact.

On October 15, analysts from both Truist Securities and Morgan Stanley reiterated their Buy ratings. However, Michael Ciarmoli, the analyst from Truist, lowered the price target on TransDigm Group Inc. (NYSE:TDG) from $1,730 to $1,647.

On the other hand, Morgan Stanley analyst Kristine Liwag decreased her price target from $1,750 to $1,600. Despite the government shutdown, Liwag holds a relatively more positive view on the defense operators. She suggests that any decline in the share prices due to a softer outlook for the next quarter or year should be used as a buying opportunity.

Among the Hold or Neutral-rated analysts, Deutsche Bank lowered the price target on the stock on October 8 from $1,490 to $1,370, as part of their Q3 earnings preview for the aerospace and defense group. A day earlier, Charles Minervino from Susquehanna lowered his price target from $1,500 to $1,450. While Minervino remains Neutral on the stock, he otherwise expects strong momentum in the defense sector. They also expect spending to grow by nearly 5% annually over the next few years, supported by rising geopolitical tensions, military modernization programs, and inventory replenishment efforts worldwide.

TransDigm Group Inc. (NYSE:TDG) is a global designer, producer, and supplier of highly engineered aircraft components. These components are used in nearly all commercial and military aircraft worldwide.

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 NEXT: Goldman Sachs Value Stocks: 10 Stocks to Buy and  13 Best Tech Stocks Under $10 to Invest In.

Disclosure: None. This article is originally published at Insider Monkey.