Analyst Sheila Kahyaoglu from Jefferies maintained a Buy rating on HEICO (HEI – Research Report) and keeping the price target at $305.00.
Sheila Kahyaoglu has given her Buy rating due to a combination of factors influencing HEICO’s strong financial performance and growth prospects. The company’s shares have seen a significant rise following positive earnings results, with each segment showing double-digit organic growth and maintaining healthy margins. The forecast for fiscal year 2025 includes an increase in earnings per share, driven by improved organic growth in both the Flight Support Group (FSG) and Electronic Technologies Group (ETG), as well as enhanced profitability.
Additionally, HEICO’s strategic acquisitions are expected to contribute positively to its growth trajectory. The company is benefiting from ongoing momentum in its FSG segment, supported by market share gains and a robust backlog in its missile systems business. The ETG segment also shows promise with expected stable profitability and continued defense sector momentum. Overall, HEICO’s financial health is underscored by strong free cash flow conversion and a decreasing net leverage, making it an attractive investment opportunity.
According to TipRanks, Kahyaoglu is a 5-star analyst with an average return of 11.5% and a 61.82% success rate. Kahyaoglu covers the Industrials sector, focusing on stocks such as Boeing, FTAI Aviation, and GE Aerospace.
In another report released on February 28, Deutsche Bank also maintained a Buy rating on the stock with a $293.00 price target.