William Blair analyst Louie DiPalma has maintained their bullish stance on HEI stock, giving a Buy rating today.
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Louie DiPalma has given his Buy rating due to a combination of factors, including Heico’s ability to maintain solid double-digit organic growth in its Flight Support Group despite a temporary slowdown. He views demand across the company’s aerospace aftermarket subsegments as durable, supported by customers’ ongoing shift toward lower-cost, high-quality alternative parts and services, particularly in the engine-related PMA business.
He also notes that the Electronic Technologies Group continues to grow above its longer-term target, supported by a healthy backlog even though quarterly results can be uneven and margins were pressured by weaker space and defense sales. With leverage below management’s target, DiPalma sees significant capacity for acquisitions, plus a long runway for PMA share gains within the broader aftermarket and resilient global air travel, underpinning his expectation of roughly 15% annual upside in the stock tied to earnings growth.
In another report released today, Citi also maintained a Buy rating on the stock with a $400.00 price target.