TransDigm (TDG) Acquires Two Aerospace Parts Companies for $2.2 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: seekingalpha
- Strategic Shift: TransDigm's $2.2 billion acquisition of Jet Parts Engineering and Victor Sierra Aviation Holdings marks a strategic pivot towards Parts Manufacturer Approval (PMA) components, with the transaction expected to close in the coming quarters.
- Revenue Contribution: The two businesses generated a combined $280 million in revenue in 2025, primarily focused on the commercial aerospace aftermarket, enhancing TransDigm's market position in this sector.
- Market Competition: Analysts note that this acquisition could intensify competition between TransDigm and HEICO, particularly regarding pricing strategies for PMA parts, as TransDigm's aggressive pricing may alter customer perceptions of PMA.
- Investor Confidence: BNP Paribas reiterated its Outperform rating on TransDigm and maintained a $2,000 price target, indicating confidence in the company's ability to unlock value from its expanded PMA footprint.
Analyst Views on TDG
Wall Street analysts forecast TDG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TDG is 1568 USD with a low forecast of 1370 USD and a high forecast of 1798 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
10 Buy
4 Hold
0 Sell
Moderate Buy
Current: 1433.540
Low
1370
Averages
1568
High
1798
Current: 1433.540
Low
1370
Averages
1568
High
1798
About TDG
TransDigm Group Incorporated, through its wholly owned subsidiaries, is a global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service. Its segments include Power & Control, Airframe and Non-aviation. Its product offerings provided to end-users in the aerospace industry include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, databus and power controls, cockpit security components and systems, specialized and advanced cockpit displays, engineered audio, radio and antenna systems, specialized lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
