10:10 AM EST, 11/14/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We decrease our 12-month target by $118 to $1,182, or 30.0x our FY 26 (Sep.) EPS estimate, below TDG's three-year average forward P/E of 33.4x and below the peer average of 34.7x. We cut our FY 26 EPS by $0.59 to $39.40 and start FY 27 at $45.60. Our downgrade reflects two primary concerns. First, Pentagon acquisition reforms mandating dual-sourcing pose structural risks to TDG's sole-supplier business model, particularly in defense markets where regulatory changes could erode pricing power and competitive moats. Second, decelerating earnings growth amid margin dilution puts TDG's premium valuation at risk. While FY 26 guidance shows continued revenue expansion, modest EPS growth and margin pressure from recent deals suggest the company's historically high earnings multiples may compress as growth moderates. Washington Analysis, a CFRA company, notes the DoD reforms could have an aggressive implementation timeline with bipartisan Congressional support, which could be a near-term negative catalyst for TDG.