Should You Buy TransDigm Group Inc (TDG) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Buy
Latest Price
1412.130
1 Day change
-1.05%
52 Week Range
1623.830
Analysis Updated At
2026/01/26
TransDigm Group Inc (TDG) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company demonstrates strong financial growth, positive analyst sentiment, and strategic acquisitions that align with its business model. While there are no immediate trading signals or recent news, the stock's fundamentals and long-term growth prospects make it a solid choice.
Technical Analysis
The technical indicators show a neutral to slightly bullish trend. The MACD is positive and contracting, indicating potential upward momentum. The RSI is neutral at 54.183, and the stock is trading near its pivot level of 1413.065, with resistance at 1454.106 and support at 1372.025. This suggests limited downside risk in the short term.
Options Data
Bearish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
The options data indicates a slightly bearish sentiment in open interest but a bullish sentiment in recent trading volume, as the put-call ratio for volume is below 1.0. The implied volatility is moderate, with an IV percentile of 43.6 and an IV rank of 32.03, suggesting no extreme market expectations.
Technical Summary
Sell
3
Buy
8
Positive Catalysts
Strong financial performance in Q4 2025 with revenue up 11.48% YoY, net income up 34.23% YoY, and EPS up 33.39% YoY.
Recent acquisitions of Stellant Systems and Jet Parts Engineering, which align with the company's high-margin, aftermarket-focused model, supporting long-term growth.
Analysts are bullish, with multiple price target increases and buy ratings, including a high target of $1,871 by Goldman Sachs.
Neutral/Negative Catalysts
Lack of recent news or major trading trends from insiders or hedge funds.
Neutral sentiment from hedge funds and insiders, indicating no significant buying or selling activity.
Slightly bearish sentiment in open interest options data.
Financial Performance
In Q4 2025, TransDigm reported strong financial growth: Revenue increased by 11.48% YoY to $2.437 billion, net income rose by 34.23% YoY to $451 million, EPS grew by 33.39% YoY to $7.75, and gross margin improved by 5.30% YoY to 58.19%. These results highlight the company's ability to generate consistent profitability and growth.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Analysts are broadly positive on TDG. Recent upgrades include Goldman Sachs raising the price target to $1,871, Truist raising it to $1,697, and UBS setting a target of $1,798. Analysts highlight the company's strong free cash flow, strategic acquisitions, and ability to sustain earnings growth. The stock is considered undervalued relative to its peers in the aerospace aftermarket sector.
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 1600 USD with a low forecast of 1400 USD and a high forecast of 1900 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.
13 Analyst Rating
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 1600 USD with a low forecast of 1400 USD and a high forecast of 1900 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.
10 Buy
3 Hold
0 Sell
Strong Buy
Current: 1427.180
Low
1400
Averages
1600
High
1900
Current: 1427.180
Low
1400
Averages
1600
High
1900
Goldman Sachs
Noah Poponak
Buy
maintain
AI Analysis
2026-01-20
Reason
Goldman Sachs
Noah Poponak
Price Target
AI Analysis
2026-01-20
maintain
Buy
Reason
Goldman Sachs analyst Noah Poponak raised the firm's price target on TransDigm to $1,871 from $1,684 and keeps a Buy rating on the shares. TransDigm recently announced two sizable acquisitions: Stellant Systems for $960M and Jet Parts Engineering with Victor Sierra Aviation for $2.2B, together representing roughly 6.4% of CY25 revenue, the analyst tells investors in a research note. Stellant aligns closely with TransDigm's proprietary, aftermarket-focused model, while the PMA-heavy Jet Parts and Victor Sierra acquisitions offer high-margin growth and strategic optionality, underscoring ongoing acquisition opportunities in the aerospace supply chain, the firm says.
Truist
Michael Ciarmoli
Buy
maintain
2026-01-09
Reason
Truist
Michael Ciarmoli
Price Target
2026-01-09
maintain
Buy
Reason
Truist analyst Michael Ciarmoli raised the firm's price target on TransDigm to $1,697 from $1,647 and keeps a Buy rating on the shares. Despite a strong 2025, the Aerospace & Defense sector remains broadly bullish for 2026, with rising aircraft production and sustained aftermarket demand supporting both OE and AM segments, the analyst tells investors in a research note. Defense may see fewer catalysts, but recapitalization, geopolitical tensions, and replenishment needs should sustain demand, making stock selection critical amid elevated valuations, particularly for SMID defense tech names, the firm adds.
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