William Blair analyst Louie DiPalma has reiterated their bullish stance on HEI stock, giving a Buy rating on August 21.
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Louie DiPalma has given his Buy rating due to a combination of factors including HEICO’s strong financial performance and growth prospects. The company reported third-quarter revenue and operating income that surpassed consensus estimates, with revenue reaching $1,148 million and operating income at $265 million. This financial success was driven by robust organic growth in both the Flight Support Group (FSG) and Electronic Technologies Group (ETG) segments, with the FSG segment showing a 13% growth and the ETG segment accelerating to 7% growth.
Furthermore, HEICO’s operating margins have expanded year-over-year, indicating improved operational efficiencies. The company’s free cash flow also exceeded expectations, reaching $219 million, which underscores its strong cash generation capabilities. With HEICO being a key player in the $120 billion aftermarket aerospace market, these financial metrics and market positioning support DiPalma’s positive outlook and Buy rating for the stock.
In another report released on August 21, RBC Capital also maintained a Buy rating on the stock with a $335.00 price target.
Based on the recent corporate insider activity of 36 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.