UBS Cuts Price Target on TransDigm Group Incorporated (TDG) to $1,800, Keeps Buy Rating

TransDigm Group Incorporated (NYSE:TDG) is among the 10 best American defense stocks to buy according to Wall Street analysts.

On February 4, UBS cut its price target on the stock to $1,800 from $1,804, while maintaining a Buy rating. The revision comes amid rising concerns over a deceleration in aftermarket growth.

However, according to TipRanks, the firm told investors in a research note that a high single-digit growth can be attained through pricing power, increased flight activity, and content gains. Moreover, UBS anticipates profit per share to grow in the high teens.

The firm also noted TransDigm Group Incorporated (NYSE:TDG)’s ‘bolt-on’ mergers and acquisitions strategy, reflected by the recent takeovers of Jet Parts Engineering, Victor Sierra Aviation Holdings, and Stellant Systems, Inc., for a combined value of approximately $3.2 billion.

In other news, on Tuesday, the company announced results for the first quarter of fiscal 2026. Net sales rose 14% year-over-year to $2.29 billion. Adjusted EPS came in at $8.23, up from $7.83 last year. However, reported net income fell 9.7% from the prior year’s period to $445 million, due to increased interest expenses.

Looking ahead, the aircraft parts maker’s projected profit for fiscal 2026 came in below Wall Street’s estimates, resulting in shares slumping 5% in premarket trading. Rising raw material costs and higher interest expense from recent acquisitions have been squeezing the company’s margins.

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

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Disclosure: None.