Wells Fargo has adjusted its price target for TransDigm Group Incorporated (TDG, Financial), reducing it from $1,410 to $1,375 while maintaining an Overweight rating. This revision comes as part of a broader reassessment of the aerospace sector due to anticipated global economic challenges.
The financial firm foresees a moderate economic slowdown potentially affecting aerospace demand significantly. Specifically, Wells Fargo predicts a 300 basis point drop in aircraft demand, projecting a 6% impact on aftermarket sales and a 10% effect on original equipment sales. This outlook reflects concerns about how the economic environment may challenge both the original equipment manufacturers and the aftermarket sector.
Investors should consider these adjustments in the context of broader market trends and sector-specific challenges as they evaluate their positions in TDG and similar aerospace stocks.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for TransDigm Group Inc (TDG, Financial) is $1,454.24 with a high estimate of $1,605.00 and a low estimate of $1,050.00. The average target implies an upside of 8.76% from the current price of $1,337.13. More detailed estimate data can be found on the TransDigm Group Inc (TDG) Forecast page.
Based on the consensus recommendation from 23 brokerage firms, TransDigm Group Inc's (TDG, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for TransDigm Group Inc (TDG, Financial) in one year is $1290.24, suggesting a downside of 3.51% from the current price of $1337.13. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the TransDigm Group Inc (TDG) Summary page.
