Heico initiated with a Neutral at Susquehanna on ‘premium valuation’

Core Viewpoint - Susquehanna initiated coverage of Heico (HEI) with a Neutral rating and a price target of $385, citing a sizable premium valuation as the reason for the Neutral stance despite positive growth projections [1] Group 1: Company Performance - Heico is expected to achieve an 8% compound annual growth in revenue from FY26 to FY28, driven by aftermarket tailwinds in commercial aviation [1] - The company is also projected to have a 13% compound annual growth rate in free cash flow during the same period, supported by sustained investment in defense and space [1] Group 2: Market Position - Susquehanna believes there are more attractive upside opportunities in other stocks within its Aerospace & Defense (A&D) coverage at this time [1]