RBC Capital Downgrades ​HEICO Corporation (HEI) From Buy to Hold, Lowers PT

​HEICO Corporation (NYSE:HEI) is one of the Best Aerospace Stocks to Buy According to Analysts. On December 8, Kenneth Herbert from RBC Capital downgraded the stock from Buy to Hold, but raised the price target from $218 to $233.

​The rating comes as the company is set to release its fiscal Q4 2025 results on December 18. Wall Street expects the company to post $1.17 billion in revenue and $1.21 in GAAP EPS during the fiscal Q4 2025.

​That said, HEICO Corporation (NYSE:HEI) topped Wall Street estimates during its fiscal Q3 2025. The company grew its revenue by 15.66% year-over-year to $1.15 billion, surpassing estimates by $32.45 million. Moreover, the EPS of $1.26 also topped the consensus by $0.12. Management attributed growth to continued momentum in its aerospace aftermarket business, as the Flight Support Group’s net sales increased 18% to a record $802.7 million.

​In other news, on November 10, HEICO Corporation (NYSE:HEI) announced the acquisition of Axillon Aerospace’s Fuel Containment Business from affiliates of SK Capital Partners, LP. The stock has decreased more than 7.5% since the announcement, but remains up by 28.89% year-to-date. Management noted that they expect the acquisition to accelerate earnings upon successful closing. While the financial terms of the deal were not disclosed, management anticipates closing the deal by the first quarter of 2026.

​HEICO Corporation (NYSE:HEI) provides aftermarket aircraft parts and electronics, mainly designing, manufacturing, and repairing FAA-approved jet engine and aircraft component replacement parts for commercial, business, and military operators.

While we acknowledge the potential of HEI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HEI and that has 100x upside potential, check out our report about this cheapest AI stock.

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