Update shared on04 Sep 2025
TransDigm Group’s price target remains steady at $1621 as weaker commercial OEM sales expectations are offset by bullish confidence in ongoing aerospace and defense strength, sector tailwinds, and the company’s resilient fundamentals.
Analyst Commentary
- Recent reduction in price target reflects lowered sales guidance due to weaker Commercial OEM end-market expectations, driven by slower build rates and inventory destocking in the supply chain.
- Bullish analysts are raising targets on continued sector momentum, citing ongoing strength and stability across the aerospace and defense space.
- Secular tailwinds in commercial aerospace and defense, including improving Boeing 737 production, delivery, and order trends, are fostering optimism for TransDigm’s outlook in 2025 and beyond.
- Confidence remains high among bullish analysts regarding persistent tightness in the aerospace and defense aftermarket and robust results in Space & Defense segments.
- TransDigm’s disciplined operational model, focus on organic growth and productivity, and resilient fundamentals are viewed as key drivers positioning the company as a long-term winner, with positive momentum seen especially in defense.
What's in the News
- Board authorized a special cash dividend of $90.00 per share and equivalent payments on eligible vested options.
- Completed share repurchase of 1,891,449 shares (3.42%) for $1.41 billion under the ongoing buyback program.
- Issued full-year 2025 guidance: projected net sales of $8.76–$8.82 billion (up 10.7%), net income of $1.93–$1.98 billion (up 14.1%), and EPS of $32.39–$33.21 (up 28.0%).
- Added to Russell 1000 Value-Defensive Index, Russell 1000 Defensive Index, and Russell 1000 Growth-Defensive Index; dropped from Russell 1000 Dynamic Index.
Valuation Changes
Summary of Valuation Changes for TransDigm Group
- The Consensus Analyst Price Target remained effectively unchanged, at $1621.
- The Consensus Revenue Growth forecasts for TransDigm Group remained effectively unchanged, at 8.0% per annum.
- The Discount Rate for TransDigm Group remained effectively unchanged, at 8.36%.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.