11:30 AM EDT, 05/31/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target price of $190, up $14, reflects a 45x multiple of projected FY 2025 (Oct.) EPS, above HEI's historical forward average. We lift our FY 2024 EPS estimate by $0.07 to $3.57 and raise FY 2025's by $0.03 to $4.22. Apr-Q EPS of $0.88 vs. $0.76, beat the consensus view by $0.06. The aftermarket parts business was up 21% in the quarter, led by volume gains, but included some pricing increase as well. Net debt to EBITDA is down to 2.45x from the pre-Wencor level of 3.04x, and the company continues to integrate Wencor into its operations. Aerospace demand should remain strong over the next five to seven years as the industry retools toward fleet replacement, but valuation on FY 2025 estimates remains highly elevated at over 50x consensus, which we think implies an expectation that margins are going to move meaningfully higher; however, with the ongoing slow pace of deliveries by original equipment manufacturers, notably Boeing (BA 174 **), we think that may be difficult to achieve.