Morgan Stanley Forecasts Strong Price Appreciation for Transdigm Group (NYSE:TDG) Stock

Key Points

• Morgan Stanley raised its TransDigm price target to $1,405 from $1,300, implying 12.86% upside from the prior close, but maintained an “equal weight” rating.
• Analyst sentiment is mostly cautious: MarketBeat reported an average “Hold” rating and an average price target of $1,445.40.
• TransDigm beat quarterly estimates, reporting EPS of $12.44 and revenue of $2.99 billion, up 22.6% year over year; however, its FY 2027 EPS guidance midpoint was slightly below analyst consensus.

Transdigm Group (NYSE:TDG - Get Free Report) had its price target raised by investment analysts at Morgan Stanley from $1,300.00 to $1,405.00 in a note issued to investors on Wednesday, Benzinga reports. The brokerage currently has an "equal weight" rating on the aerospace company's stock. Morgan Stanley's target price indicates a potential upside of 12.86% from the company's previous close.

Several other research analysts have also recently issued reports on the company. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Transdigm Group in a research report on Friday, August 28th. BMO Capital Markets lowered their price target on Transdigm Group from $1,525.00 to $1,400.00 and set an "outperform" rating for the company in a research report on Monday, September 28th. UBS Group raised their price objective on Transdigm Group from $1,585.00 to $1,695.00 and gave the company a "buy" rating in a research note on Wednesday, August 5th. The Goldman Sachs Group cut their price objective on shares of Transdigm Group from $1,972.00 to $1,745.00 and set a "buy" rating on the stock in a report on Monday, October 12th. Finally, TD Cowen upped their target price on shares of Transdigm Group from $1,300.00 to $1,350.00 and gave the stock a "buy" rating in a research note on Wednesday. Five analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $1,445.40.

Transdigm Group Trading Up 1.6%

NYSE TDG traded up $19.41 during trading hours on Wednesday, hitting $1,244.94. The company's stock had a trading volume of 192,896 shares, compared to its average volume of 392,644. Transdigm Group has a 52 week low of $1,071.25 and a 52 week high of $1,463.03. The company has a market capitalization of $69.63 billion, a PE ratio of 37.76, a price-to-earnings-growth ratio of 1.74 and a beta of 0.98. The company's 50-day simple moving average is $1,131.80 and its two-hundred day simple moving average is $1,221.05.

Transdigm Group (NYSE:TDG - Get Free Report) last released its quarterly earnings results on Tuesday, November 10th. The aerospace company reported $12.44 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $12.21 by $0.23. The business had revenue of $2.99 billion during the quarter, compared to the consensus estimate of $2.95 billion. Transdigm Group had a negative return on equity of 23.65% and a net margin of 19.69%. The company's quarterly revenue was up 22.6% on a year-over-year basis. During the same quarter in the previous year, the business earned $10.82 EPS. Transdigm Group has set its FY 2027 guidance at 47.090-47.940 EPS. Research analysts anticipate that Transdigm Group will post 38.81 EPS for the current fiscal year.

Insider Activity at Transdigm Group

In related news, COO Joel Reiss sold 4,100 shares of the stock in a transaction that occurred on Thursday, October 15th. The stock was sold at an average price of $1,128.04, for a total transaction of $4,624,964.00. Following the completion of the sale, the chief operating officer directly owned 3,600 shares of the company's stock, valued at approximately $4,060,944. This trade represents a 53.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director W. Howley sold 10,132 shares of Transdigm Group stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $1,236.28, for a total value of $12,525,988.96. Following the sale, the director owned 21,548 shares in the company, valued at $26,639,361.44. This trade represents a 31.98% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 22,032 shares of company stock valued at $26,250,979. 3.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Transdigm Group

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Conning Inc. increased its holdings in Transdigm Group by 4.1% during the third quarter. Conning Inc. now owns 230 shares of the aerospace company's stock worth $249,000 after buying an additional 9 shares during the last quarter. Csenge Advisory Group boosted its stake in Transdigm Group by 0.3% in the third quarter. Csenge Advisory Group now owns 2,882 shares of the aerospace company's stock valued at $3,120,000 after acquiring an additional 9 shares during the last quarter. NewEdge Advisors LLC boosted its stake in Transdigm Group by 0.3% in the first quarter. NewEdge Advisors LLC now owns 3,297 shares of the aerospace company's stock valued at $3,822,000 after acquiring an additional 11 shares during the last quarter. Verus Capital Partners LLC grew its position in shares of Transdigm Group by 1.2% during the 3rd quarter. Verus Capital Partners LLC now owns 907 shares of the aerospace company's stock valued at $982,000 after acquiring an additional 11 shares during the period. Finally, Schmidt P J Investment Management Inc. grew its position in shares of Transdigm Group by 2.6% during the 3rd quarter. Schmidt P J Investment Management Inc. now owns 471 shares of the aerospace company's stock valued at $510,000 after acquiring an additional 12 shares during the period. 95.78% of the stock is owned by hedge funds and other institutional investors.

Latest Transdigm Group News

Here's some of the latest news about TDG:

• Positive Sentiment: Fiscal Q4 adjusted EPS of $12.44 topped estimates, while revenue rose 23% year over year to $2.99 billion and beat forecasts. Organic sales grew 14%, adding to evidence of solid operating demand. TransDigm fiscal 2026 results
• Positive Sentiment: RBC raised its price target to $1,300 from $1,200 while keeping a Sector Perform rating, signaling a higher valuation view but not an outright bullish recommendation. RBC raises TransDigm price target
• Negative Sentiment: Fiscal 2027 adjusted EPS guidance of $47.09–$47.94 has a midpoint below the $47.91 analyst consensus. That modest shortfall overshadowed the quarterly beat in reports of the stock’s post-earnings weakness. TransDigm profit outlook falls short

Transdigm Group Company Profile

TransDigm Group Incorporated designs, produces and supplies highly engineered components for the aerospace industry. Its products include mechanical and electromechanical systems, pumps, valves, ignition systems, batteries, power-conditioning devices and cockpit components. The company serves commercial, military and business aviation markets, supplying components for both original aircraft production and the aftermarket. Its products are used on aircraft operated around the world, and its aftermarket business provides replacement parts and related support.

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