Morgan Stanley Raises HEICO (HEI) PT to $330 on Aerospace Strength

HEICO Corporation (NYSE:HEI) is one of the best growth stocks to buy and hold for 3 years. On July 17, Morgan Stanley analyst Kristine Liwag increased the firm’s price target on Heico to $330 from $305, while maintaining an Equal Weight rating on the shares. The adjustment reflects the strong performance of aerospace stocks, which are currently trading at record valuation multiples. Morgan Stanley believes this multiple expansion indicates the sector’s resilience and expects positive industry trends to continue.

Heico achieved record consolidated operating income and net sales in Q2 2025, with increases of 19% and 15% respectively, year-over-year. Cash flow from operating activities increased by 45% to $204.7 million. Breaking down by segment, the Flight Support Group reported a 19% increase in net sales, reaching $767.1 million. The Electronic Technologies Group saw a 7% increase in net sales to $342.2 million.

A skilled machinist inspecting a precision bearing for a aerospace/defense application.

However, the potential reductions in defense, space, or homeland security spending by the US and/or foreign customers could impact sales at the company. The company is also exposed to increasing competition from both existing and new market entrants, which could reduce sales. Product development or manufacturing difficulties could lead to increased costs and delayed sales as well.

HEICO Corporation (NYSE:HEI) designs, manufactures, and sells aerospace, defense, and electronics-related products and services in the US and internationally.

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Disclosure: None. This article is originally published at Insider Monkey.