Organic Growth and Disciplined Capital Allocation Sparks Confidence in Helios Technologies (HLIO)

Helios Technologies (NYSE:HLIO) is one of the 15 best Industrial Machinery and Supplies stocks to buy according to Hedge Funds.

On January 26, the price target on Helios Technologies (NYSE:HLIO) was revised from $64 to $74, and the stock was assigned an Overweight rating by KeyBanc analyst Jeffrey Hammond.

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The analyst raised his price target based on an optimistic view, which is driven by a mix of end-market improvements and high leverage on volumetric growth. Hammond’s forecast yields a 10% upside potential at the current level.

On January 17, Tomohiko Sano from JPMorgan initiated his coverage on Helios Technologies (NYSE:HLIO), assigning an Overweight rating to the stock. He estimated a target price of $80, resulting in an upside of almost 19%.

Sano is optimistic about the business due to its disciplined capital allocation strategy and organic growth across Hydraulics and Electronics divisions. According to the analyst, the company is also benefiting from a refreshed corporate environment cultivated by CEO Sean Bagan. Following a recent on-site visit by JPMorgan, Sano acknowledged the team’s operational focus and ongoing cultural transformation, that back his bullish stance on the stock.

Helios Technologies (NYSE:HLIO) is an industrial technology company that delivers high-performance electronic and engineered motion-control solutions. The business operates under two segments, Hydraulics and Electronics. Products are sold under various brands, including Sun Hydraulics, NEM, Daman, Murphy, Zero Off, HCT, Joyonway, and Schultes.

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