Bank of America Securities analyst Ronald Epstein has reiterated their bullish stance on TDG stock, giving a Buy rating on November 17.
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Ronald Epstein has given his Buy rating due to a combination of factors that highlight TransDigm Group’s robust business model and growth potential. The company’s performance is driven by its strong pricing power and disciplined execution, particularly in the commercial aerospace aftermarket, where demand remains strong. Concerns about OEM destocking have been addressed, alleviating previous bearish sentiment, and defense continues to be a significant growth driver for both revenue and cash generation.
TransDigm’s strategic focus on mergers and acquisitions, along with its ability to deploy capital effectively, supports its long-term value creation. The aftermarket and defense sectors are expected to drive margin opportunities through FY26, with a recovery in widebody shop visits anticipated to boost growth. Improved visibility into OEM operations and stable production rates at major manufacturers like Boeing and Airbus further support the positive outlook. Additionally, the company’s strong cash generation and liquidity position enable it to pursue acquisitions or potentially authorize special dividends, reinforcing the Buy rating.
Epstein covers the Industrials sector, focusing on stocks such as General Dynamics, Embraer, and Howmet Aerospace. According to TipRanks, Epstein has an average return of 18.2% and a 64.10% success rate on recommended stocks.
In another report released on November 17, Jefferies also maintained a Buy rating on the stock with a $1,525.00 price target.