UBS Increases HEICO (HEI) Price Target as Commercial Aerospace Demand Remains Strong

HEICO Corporation (NYSE:HEI) will trade ex-dividend on July 1, putting it among the 10 Best July Dividend Stocks to Buy.

UBS Increases HEICO (HEI) Price Target as Commercial Aerospace Demand Remains Strong

On June 1, UBS raised its price recommendation on HEICO Corporation (NYSE:HEI) to $390 from $371. It reiterated a Neutral rating on the stock. Following a strong second-quarter earnings beat, driven by 18% organic growth and segment EBIT margins that came in well above consensus, UBS increased its EBITDA estimates. Analyst Gavin Parsons said demand remains strong across both the commercial aerospace and defense markets, with no meaningful slowdown in the aftermarket business despite geopolitical tensions and higher fuel prices.

On May 29, RBC Capital also raised its price goal on HEI to $390 from $375. It maintained an Outperform rating. The firm said the company’s fiscal second-quarter results were strong, with revenue exceeding consensus estimates by 10%. RBC noted that Heico’s sales increased 25% year over year, including about 18% organic growth. Both of the company’s business segments posted high-teens organic growth, according to the analyst.

HEICO Corporation (NYSE:HEI) manufactures jet engines and aircraft component replacement parts. The company operates through two segments: the Flight Support Group (FSG) and the Electronic Technologies Group (ETG).

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