Is TransDigm Group Incorporated (TDG) Among the 10 Largest Defense Stocks in 2025?

TransDigm Group Incorporated (NYSE:TDG) is among the 10 Largest Defense Stocks in 2025. Several analysts have slashed the stock’s price target in recent weeks amid ongoing government shutdowns.

Morgan Stanley’s Kristine Liwag, on October 15, lowered TDG’s price target to $1,600 from $1,750. The analyst told investors that leading defense stocks were poised to report Q3 earnings during the shutdown, which has made it a challenge for management teams to forecast 2026 with clarity. However, the firm maintained its Overweight rating for the stock.

On the same day, Truist also cut its price target for TransDigm Group Incorporated (NYSE:TDG) to $1,647 from $1,730, while keeping a Buy rating for its shares. The adjustment came as part of a broader research note by the firm while previewing Q3 results in the Aerospace and Defense sector. The analyst described the defense segment as nuanced, given the impact of government shutdowns on Q4 and FY26 outlooks.

On the other hand, at the end of September, BMO Capital analyst Michael Goldie had initiated coverage of the stock with a Buy rating and a $1,420 price target. Although he acknowledged the lack of visibility over growth, Goldie believes that potentially large mergers & acquisitions activity could help the stock re-rate.

Despite the recent price target reductions, the overall sentiment around the stock looks promising. Wall Street analysts have a consensus Buy rating for TransDigm Group Incorporated (NYSE:TDG), with an average one-year share price target of $1,557.89, representing an upside of 17.43%.

TransDigm Group Incorporated (NYSE:TDG) manufactures engineered aircraft components for commercial and military aircraft.

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Disclosure: None.