Jefferies analyst Sheila Kahyaoglu maintained a Buy rating on HEICO (HEI – Research Report) today and set a price target of $305.00.
Sheila Kahyaoglu’s rating is based on several strategic opportunities and financial metrics that position HEICO favorably in the market. One key factor is the potential revenue growth from the Parts Manufacturer Approval (PMA) opportunities with the Department of Defense, which are expected to materialize by 2026. This initiative has gained traction due to legislative support and streamlined procurement processes, enhancing HEICO’s ability to supply FAA-approved parts for military aircraft.
Additionally, HEICO’s Electronic Technologies Group (ETG) is projected to maintain stable margins between 22-24%, with organic growth complemented by a robust merger and acquisition pipeline. The company has already completed three acquisitions in the fiscal year to date, focusing on entrepreneurial businesses that can operate independently. Furthermore, HEICO is trading at a discount relative to its historical premium over the S&P 500, suggesting potential upside in its stock valuation.