Stock Price & Analysis

Based on the recent data and analysis, here's a concise assessment of TDG stock:

Recent Analyst Updates

• UBS upgraded TDG from Neutral to Buy with a price target of $1,595, up from $1,502
• The upgrade is based on expectations of:
  • Stabilized aftermarket growth of 10-11%
  • 100 basis points annual EBITDA margin expansion
  • Increased capital deployment potential

Growth & Financial Outlook

• The company rates 62% on Martin Zweig's Growth Investor model, indicating reasonable but not exceptional growth potential
• UBS projects above-consensus earnings for fiscal years 2026 and 2027
• By fiscal 2027, the company could have access to $24 billion in available capital for deployment

Positive Catalysts

• Strong recurring revenue model with sole-source business advantages
• Expected acceleration in aftermarket growth from Q1
• Favorable environment for potential acquisitions
• Net leverage of 5X within target range of 5-7X

Buy Recommendation Based on the recent analyst upgrades, strong financial projections, and positive business momentum, TDG appears to be a compelling buy at current levels. The combination of margin expansion, capital deployment opportunities, and accelerating aftermarket growth provides multiple catalysts for future appreciation.

Based on recent analyst reports and market data, TransDigm (TDG) is projected to reach $1,595 by late 2025 according to UBS's latest upgrade, driven by stabilized 10-11% aftermarket growth and 100 basis points annual EBITDA margin expansion. The company's recurring revenue model and sole-source business positioning supports this bullish outlook, with potential for significant capital deployment reaching $24 billion by fiscal 2027.

The S1 support level for TDG Stock is $1294.75 ,The R1 resistant level for TDG Stock is $1374.01.

As of the end of day on 2025-03-06, the price of TDG Stock was $1330.11.

The target price for TDG Stock according to analyst rating is 1,521, with the highest price target at 1,600 and the lowest at 1,348. Analysts have a Strong Buy rating on TDG Stock overall.

The market cap of TDG is $75.4B.

Based on the recent data and analysis, TDG appears to be fairly valued with a balanced risk-reward profile. Here's why:

Valuation Analysis

Recent Price Movement

Key Findings:

1. According to Martin Zweig's Growth Investor model, TDG scores 62% on fundamental metrics, indicating reasonable but not exceptional growth potential in the Aerospace & Defense sector.

2. Recent analyst upgrades from major firms support positive outlook:

• UBS upgraded TDG to Buy with $1,595 target (Feb 2025), citing stabilized aftermarket growth of 10-11% and margin expansion potential [2, 3]
• Wells Fargo upgraded to Overweight with $1,500 target (Feb 2025), highlighting significant capital deployment opportunities

3. Strong capital deployment potential:

• Net leverage at 5X within 5-7X target range
• Potential for $12B available capital by year-end
• Projected $24B capital availability by fiscal 2027

4. Recent insider activity shows some selling pressure:

• CEO Kevin Stein sold 479 shares (~5.5% of holdings) in February 2025
• Overall 179 insider sales vs 0 purchases in past 6 months

5. Institutional activity remains balanced:

• 494 institutions increased positions
• 486 decreased positions

Conclusion: While TDG shows solid fundamentals and growth prospects, the current valuation appears to fairly reflect both the opportunities and risks. The strong analyst upgrades and capital deployment potential are balanced against insider selling activity and moderate growth scores.

TransDigm Group Incorporated is a designer, producer and supplier of engineered aircraft components for use on all commercial and military aircraft in service. The Company's segments include Power & Control, Airframe and Non-aviation. The Power & Control segment develops, produces and markets systems and components that predominately provide power to or control power of the aircraft utilizing electronic, fluid, power and mechanical motion control technologies. Its product offerings include mechanical/electro-mechanical actuators and controls. The Airframe segment develops, produces and markets systems and components that are used in non-power airframe applications utilizing airframe and cabin structure technologies. Its product offerings include engineered latching and locking devices, and engineered rods. The Non-aviation segment develops, produces and markets products for non-aviation markets. Its products include belts and safety restraints for ground transportation applications.

Based on recent analyst reports and market data, TransDigm (TDG) stock is projected to reach approximately $2,100-2,300 by 2030, driven by strong aftermarket growth of 10-11% annually and consistent EBITDA margin expansion of 100 basis points per year. The company's significant capital deployment capacity, estimated to reach $24 billion by fiscal 2027, along with its recurring revenue model and sole-source business positioning, supports this bullish outlook. Multiple analyst upgrades, including UBS's recent price target of $1,595 and Wells Fargo's positive stance on capital deployment opportunities, indicate strong growth trajectory.

TDG has a total of 15500 employees.