The Bear Cave issued a cautious report on TransDigm (TDG), saying that the company describes itself as “a leading global designer, producer and supplier of highly engineered aircraft components that are critical to the safe and effective operation of nearly all commercial and military aircraft worldwide.” TransDigm has “aggressively” raised prices for customers like commercial airliners and the Department of Defense, and in some cases, prices for TransDigm parts have increased 40%+ per year for decades and the company has faced numerous allegations of price gouging the U.S. government as well as allegations of accounting fraud. The Bear Cave believes TransDigm’s model is enabled by “burdensome regulation and bureaucratic negligence,” and believes this will change under the incoming Trump Administration and that TransDigm should be “target #1” for the Department of Government Efficiency.
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Read More on TDG:
- AAR Corp. signs exclusive global distribution agreement with Whippany Actuation
- TransDigm Group’s Strong 2024 Financial Results
- Morning Movers: Under Armour and Lyft soar following earnings
- TransDigm reports Q4 adjusted EPS $9.83, consensus $9.29
- TransDigm sees FY25 adjusted EPS $35.36-$37.28, consensus $39.00
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
