Analyst Kristine Liwag of Morgan Stanley maintained a Buy rating on Transdigm Group (TDG – Research Report), with a price target of $1,575.00.
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Kristine Liwag’s rating is based on several compelling factors that highlight TransDigm Group’s strong market position and financial performance. The company has demonstrated robust commercial aftermarket demand, with bookings surpassing sales in the second quarter of fiscal year 2025. This trend is supported by consistent growth in point of sales data through distribution partners, indicating sustained demand for TransDigm’s products.
Furthermore, TransDigm’s management has shown effective execution, as evidenced by an increase in adjusted EBITDA margin to 54% in the second quarter of fiscal year 2025. The company’s strategic capital deployment, including approximately $500 million in share repurchases year-to-date, suggests a proactive approach to enhancing shareholder value. With leverage levels projected to allow for further capital deployment opportunities and a price target of $1,575 based on a premium EV/EBITDA multiple, Liwag’s Buy rating reflects confidence in TransDigm’s continued growth and financial resilience.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $1,500.00 price target.
Based on the recent corporate insider activity of 99 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.