Analysts are Downgrading These 5 Stocks

1. TransDigm Group Incorporated (NYSE:TDG)

Number of Hedge Fund Holders: 63

Shares of TransDigm Group Incorporated (NYSE:TDG) declined more than four percent yesterday after Wells Fargo dropped its ratings for the aerospace manufacturing company from “Overweight” to “Equal Weight.”

Analyst Matthew Akers cited weakening demand and elevated costs that could slow down the company’s growth. Akers reduced his price target for TransDigm Group Incorporated (NYSE:TDG) from $735 per share to $660 per share.

Earlier this year, investment management firm Vulcan Value Partners briefly discussed TransDigm Group Incorporated (NYSE:TDG) in its second-quarter 2022 investor letter. Here’s what the firm said:

“TransDigm Group Inc. is an aerospace manufacturing firm that provides highly engineered, niche components for use on commercial and military aircraft. The vast majority of the company’s profits come from aftermarket sales of sole-sourced products. The company produces high levels of free cash flow and has an effective, shareholder-oriented management team who are good capital allocators. Despite the company’s strong results during the quarter and solid outlook, its stock price declined.”

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