TD Cowen analyst Gautam Khanna has maintained their bullish stance on TDG stock, giving a Buy rating on August 8.
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Gautam Khanna has given his Buy rating due to a combination of factors including the strategic vision of the incoming CEO, Mike Lisman, which aligns with the company’s historical focus on hardware within the aerospace and defense sector. The company’s commitment to maintaining its investment return thresholds and consistent cash deployment strategies, such as special dividends, further supports this rating.
Additionally, the recent announcement of a $5 billion debt-funded special dividend reflects the company’s strong financial position and ability to manage increased interest expenses while maintaining significant capacity for mergers and acquisitions. The promising M&A pipeline, coupled with the company’s affirmed growth guidance in the commercial aftermarket sector, particularly in engine aftermarket sales, contributes to a positive outlook for Transdigm Group’s stock.
In another report released on August 8, KeyBanc also reiterated a Buy rating on the stock with a $1,600.00 price target.
Based on the recent corporate insider activity of 100 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TDG in relation to earlier this year.