Baird downgraded TransDigm (TDG) to Neutral from Outperform with a price target of $1,400, down from $1,650. The firm cites the company’s growing mix of manufacturing volumes and slowing aftermarket growth that will cap its margins over the medium term for the downgrade. TransDigm is still posting “exceptional” adjusted EBITDA margins, but with original equipment manufacturer growth plus lower margin mix from recent announced deals the company has limited margin expansion in fiscal 2026, the analyst tells investors in a research note.
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