Analyst Ronald Epstein from Bank of America Securities maintained a Buy rating on Transdigm Group (TDG – Research Report) and keeping the price target at $1,500.00.
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Ronald Epstein has given his Buy rating due to a combination of factors, including TransDigm Group’s strong financial performance and strategic outlook. The company reported an adjusted EPS of $9.11, surpassing both Bank of America’s estimate of $8.57 and the Street’s expectation of $8.95, largely due to robust margins. EBITDA margins were particularly impressive at 54.0%, exceeding both Bank of America’s and Bloomberg’s projections.
Additionally, TransDigm Group has maintained its FY2025 outlook, even after accounting for the impact of new tariffs, which reflects confidence in its future performance. The company’s disciplined approach to capital deployment is evident in its share repurchase activities, with $53 million in shares bought back during the quarter and an additional $131 million afterward. Furthermore, the planned leadership transition, with Mike Lisman set to succeed Kevin Stein as CEO, is expected to be smooth, which should reassure investors. These factors collectively underpin Epstein’s Buy rating for the stock.
In another report released on April 22, KeyBanc also maintained a Buy rating on the stock with a $1,500.00 price target.
TDG’s price has also changed slightly for the past six months – from $1382.600 to $1391.860, which is a 0.67% increase.