TransDigm price target raised to $1,798 from $1,738 at UBS

UBS raised the firm’s price target on TransDigm (TDG) to $1,798 from $1,738 and keeps a Buy rating on the shares. The TransDigm debate centers on whether the company can sustain earnings compounding despite M&A challenges, slower aftermarket growth, and rising interest expenses, the analyst tells investors in a research note. While bears see limited upside, the company’s strong free cash flow, buyback potential, and possible M&A opportunities support a case for continued value creation, with free cash flow per share compounding estimated near 19% annually, UBS says.