William Blair analyst Louie DiPalma has reiterated their bullish stance on HEI stock, giving a Buy rating on August 29.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Louie DiPalma has given his Buy rating due to a combination of factors including HEICO’s strong financial performance and growth potential. The company reported robust third-quarter results, with a notable 13% organic growth in its Flight Support Group (FSG), which, despite a slight deceleration from the previous quarter, remains impressive. This growth is particularly significant given HEICO’s lower exposure to the engine aftermarket compared to its peers, yet it continues to sustain strong double-digit organic results.
Furthermore, HEICO’s Electronic Technologies Group (ETG) saw an acceleration in organic sales growth, and the company’s operating margin expanded by 130 basis points, primarily driven by the FSG business. With a net leverage below the target, HEICO has ample room for mergers and acquisitions, enhancing its growth prospects. Additionally, the company’s positioning to benefit from government cost efficiency initiatives and defense spending further supports the Buy rating. The expectation of a 15% annual upside based on EBITDA growth also contributes to the positive outlook.
In another report released on August 29, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $359.00 price target.
Based on the recent corporate insider activity of 34 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HEI in relation to earlier this year.