TransDigm Group: Solid Business With Great Fundamentals
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Redfox Capital Ideas652 FollowersFollow5ShareSavePlay(10min)CommentsSummaryTransDigm Group earns a buy rating, driven by structural pricing power, visible growth catalysts, and disciplined capital allocation.TDG benefits from proprietary, mission-critical components with high aftermarket exposure, locking in long-duration revenue streams and strong pricing power.Defense demand is robust, with 13% FY25 growth and new program wins, while commercial OEM headwinds are easing as destocking ends.Management's consistent M&A strategy, strong cash generation, and margin expansion underpin confidence in continued earnings compounding. Monty Rakusen/DigitalVision via Getty Images Investment Summary My recommendation for TransDigm Group Incorporated (TDG) is a buy rating. The combination of structural pricing power, visible growth tailwinds, and a solid capital allocation playbook makes TDG an attractive business and stock. With defenseThis article was written byRedfox Capital Ideas652 FollowersFollowI focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the medium to long-term. Ultimately, I aim to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.