TransDigm Group Incorporated (TDG) Removed From Jefferies’ Franchise Picks List, Price Target Slashed

TransDigm Group Incorporated (NYSE:TDG) is among the 12 Best Defense Stocks to Buy Right Now. On September 17, Jefferies analyst Sheila Kahyaoglu lowered the stock’s price target to $1,490 from $1,650, while maintaining a Buy rating for its shares. The firm also removed the company from its Franchise Picks list.

TransDigm Group Incorporated (TDG) Removed From Jefferies' Franchise Picks List, Price Target Slashed

Kahyaoglu told investors in a research note that the company’s EBITDA multiple had declined 4% since the end of 2023, amid lower after-market volumes. However, the analyst highlighted that TransDigm Group Incorporated (NYSE:TDG) has $6 billion of capacity for acquisitions, which could be 3% accretive to earnings at a 14x transaction multiple.

Overall, Wall Street analysts maintain a positive outlook for the stock, with a consensus Buy rating and a one-year average price target of $1,596.56, representing an upside potential of 25% from the closing price of September 18.

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

While we acknowledge the risk and potential of TDG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TDG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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