TransDigm Group Incorporated (NYSE:TDG) is one of the best aerospace and defense stocks to buy according to Wall Street analysts. TransDigm Group Incorporated (NYSE:TDG) commands a consensus Buy rating on Wall Street. The average price target for the stock is $1568.46, implying 23.45% upside from current levels.
The consensus bullish rating coincides with Bank of America Securities analyst Ronald Epstein reiterating a Buy rating on the stock on November 17. According to the investment bank, the company boasts a robust business model and growth potential. Its performance is driven by strong pricing power and disciplined execution in the commercial aerospace aftermarket.
The company’s outlook also remains positive following the addressing of OEM destocking concerns. Bank of America expects opportunities in the defense sector to continue being a growth driver for revenue and cash generation. Strategic focus on mergers and acquisitions, along with effective capital deployment, affirms the company’s ability to generate long-term value.
The investment bank also expects the aftermarket and defense sectors to drive TransDigm’s margin opportunities through 2026. Improved visibility into original equipment manufacturer operations and stable production rates at Boeing and Airbus strengthen the long-term outlook. Strong cash generation and liquidity position should allow the company to pursue acquisitions to unlock new growth opportunities.
TransDigm Group Incorporated (NYSE:TDG) designs, produces, and supplies highly engineered aircraft components, systems, and subsystems for nearly all commercial and military aircraft. It focuses on critical parts like pumps, valves, actuators, seatbelts, and flight controls, often through a strategy of acquiring specialized, market-leading aerospace companies with proprietary products and strong aftermarket sales.
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Disclosure: None. This article is originally published at Insider Monkey.
