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Research Alert: CFRA Maintains Buy Opinion On Shares Of Transdigm Group Incorporated
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Research Alert: CFRA Maintains Buy Opinion On Shares Of Transdigm Group Incorporated
Aug 7, 2025 9:05 AM

11:35 AM EDT, 08/07/2025 (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 price by $87 to $1,512, using a P/E multiple of 34.0x applied to our FY 26 (Sep.) EPS estimate, above TDG's three-year average forward P/E of 33.0x and a small premium to peers, which are trading at an average forward P/E of 33.3x. We lower our FY 25 EPS estimate by $0.94 to $37.12 but raise our FY 26 EPS forecast by $0.07 to $44.48. While FQ3 results disappointed with aftermarket growth decelerating to 6% Y/Y and commercial OEM declining 7% Y/Y, we view these headwinds as temporary. We remain bullish on TDG's long-term prospects given its aftermarket exposure, pricing power, and disciplined capital allocation strategy. The aftermarket slowdown reflects natural lumpiness rather than structural issues, in our view. With aging aircraft fleets requiring more maintenance and OEM delivery delays extending aircraft lifecycles, TDG's proprietary aftermarket content should drive sustained growth. The current weakness creates an attractive entry point for long-term investors.

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