RBC Capital Downgrades HEICO Corporation (HEI) From Buy to Hold, Lowers PT
HEICO HEICO (US:HEI) Yahoo Finance·2025-12-13 16:17

Core Insights - HEICO Corporation is recognized as one of the best aerospace stocks to buy according to analysts, despite a recent downgrade from Buy to Hold by RBC Capital, which raised the price target from $218 to $233 [1] - The company is expected to report fiscal Q4 2025 results on December 18, with anticipated revenue of $1.17 billion and GAAP EPS of $1.21 [1] Financial Performance - In fiscal Q3 2025, HEICO Corporation exceeded Wall Street estimates, achieving a revenue growth of 15.66% year-over-year to $1.15 billion, surpassing estimates by $32.45 million [2] - The EPS for Q3 2025 was reported at $1.26, exceeding consensus estimates by $0.12 [2] - The growth was attributed to strong performance in the aerospace aftermarket business, particularly with the Flight Support Group's net sales increasing by 18% to a record $802.7 million [2] Recent Developments - On November 10, HEICO announced the acquisition of Axillon Aerospace's Fuel Containment Business, with expectations that the acquisition will accelerate earnings upon successful closing [3] - The stock has seen a decline of over 7.5% since the announcement but remains up by 28.89% year-to-date [3] - The financial terms of the acquisition were not disclosed, but management anticipates closing the deal by the first quarter of 2026 [3] Company Overview - HEICO Corporation specializes in aftermarket aircraft parts and electronics, focusing on the design, manufacturing, and repair of FAA-approved jet engine and aircraft component replacement parts for commercial, business, and military operators [4]