Truist has revised its price target for TransDigm Group (TDG, Financial) shares, lowering it from $1,534 to $1,490 while maintaining a Buy rating. This adjustment comes as part of a pre-earnings analysis for the Aerospace & Defense sector, highlighting several uncertainties impacting the industry as it prepares for the upcoming earnings season.
Analysts at Truist suggest that the outlook for 2025 may be clouded by several factors, including potential tariff implications and concerns about a possible recession. These factors are expected to affect cyclically-sensitive sectors, adding a layer of complexity for management teams as they prepare their financial forecasts.
Given the uncertainties, investors might find more stability by focusing on the defense segment, which benefits from recent positive developments in defense spending. This approach may offer a safer investment strategy amid the unpredictable economic landscape.
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 8.83% from the current price of $1,336.30. 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 $1290.28, suggesting a downside of 3.44% from the current price of $1336.3. 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.
