Sheila Kahyaoglu, an analyst from Jefferies, maintained the Buy rating on Transdigm Group (TDG – Research Report). The associated price target was lowered to $1,600.00.
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Sheila Kahyaoglu’s rating is based on several compelling factors that highlight Transdigm Group’s potential for growth and value. The company has demonstrated solid revenue growth, expecting an 11% increase in FY25, supported by both organic growth and acquisition contributions. This growth is anticipated to lead to a 16% rise in EBITDA, showcasing a robust financial performance. Additionally, Transdigm’s strategic capital deployment has the potential to significantly boost earnings per share, adding further value for investors.
Despite some concerns surrounding the aftermarket segment, Kahyaoglu believes in the strength of Transdigm’s annuity stream. The company’s commercial aftermarket sales have shown resilience, with passenger revenues and business jet sales performing well. Moreover, Transdigm’s trading value, currently at a discount compared to its three-year average, presents an attractive opportunity for investors. These factors collectively contribute to Kahyaoglu’s Buy rating for Transdigm Group, reflecting confidence in its future growth prospects.
Kahyaoglu covers the Industrials sector, focusing on stocks such as Boeing, FTAI Aviation, and Delta Air Lines. According to TipRanks, Kahyaoglu has an average return of 12.0% and a 61.41% success rate on recommended stocks.
In another report released on February 7, Wells Fargo also upgraded the stock to a Buy with a $1,500.00 price target.