
TransDigm (TDG) Stock Forecast & Price Target
TransDigm (TDG) Analyst Ratings
Bulls say
TransDigm Group's robust performance is highlighted by an impressive 14% increase in total defense sales during fiscal Q3 2024, accompanied by strong growth in commercial aftermarket revenues of 11% for the same period. The company has raised its outlook for defense sales, anticipating high-teens growth, bolstered by a year-to-date increase of 20% in this segment and a significant 31% growth in commercial aftermarket revenues for fiscal year 2023. Additionally, the overall strength in the aviation market is evident, with commercial OEM and defense growth rates of 23% and 13%, respectively, driven by an expanding passenger submarket showing a milestone year-to-date growth of 21%.
Bears say
The analysis indicates that TransDigm Group is likely to experience multiple compression in its valuation, with projected EBITDA multiples decreasing to 21.3x and 20x based on lowered estimates. The company's commercial aftermarket growth has underperformed expectations, recording an 11% increase compared to a consensus forecast of approximately 15%. Furthermore, while TransDigm's net leverage is currently at 4.6x, below its targeted range of 5-7x, the anticipated compression in EBITDA margins and overall financial metrics may signal potential challenges ahead.
This aggregate rating is based on analysts' research of TransDigm and is not a guaranteed prediction by Public.com or investment advice.
TransDigm (TDG) Analyst Forecast & Price Prediction
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