Top 5 Stocks to Buy According to David Abrams’s Abrams Capital Management

4. TransDigm Group Incorporated (NYSE:TDG)

Abrams Capital Management Stake: $283,038,000

Percentage of Abrams Capital Management’s Portfolio: 8.16%

Number of Hedge Fund Holders: 66

TransDigm Group Incorporated (NYSE:TDG) was founded by W. Nicholas Howley and Douglas W. Peacock in 2003 and is headquartered in Cleveland. TransDigm Group Incorporated (NYSE:TDG) manufactures engineered aircraft components, systems, and subsystems. Abrams Capital Management did not change its position in the company’s stock during Q3 2022. The fund had an investment value of approximately $283.0 million in the company at the end of the third quarter.

On November 11, 2022, Scott Deuschle, an analyst at Credit Suisse, increased his price target on TransDigm Group Incorporated (NYSE:TDG) ‘s stock. The analyst now has a price target of $718 on the stock and stated that the company reported strong EBITDA and EPS in Q4 and raised FY23 adjusted EBITDA guidance by 1.5%, which is the reason why the analyst raised his price target.

Rowan Street Capital, an investment management company, mentioned DocuSign, Inc. (NASDAQ:DOCU) in its Q3 2022 investor letter. Here is what the fund said:

In the case of DocuSign, Inc. (NASDAQ:DOCU), the “Management” part no longer satisfies our requirements in order to remain in our investment portfolio. In the past 6-9 months, the company has had a huge turnover in both employees and upper management. In June of 2021, the board decided to get rid of Dan Springer, who had been a CEO of DocuSign since 2017 and took the company public in 2018. We found this decision strange as we thought that he actually did a great job growing the company over the past 5 years (revenues grew almost 5x from $519 million in 2017 to an estimated $2.4 billion this year).… (Click here to read the full text)