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Research Alert: CFRA Maintains Hold Opinion On Shares Of Heico Corporation
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Research Alert: CFRA Maintains Hold Opinion On Shares Of Heico Corporation
Aug 27, 2025 8:55 AM

11:35 AM EDT, 08/27/2025 (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:

We increase our 12-month target by $53 to $365, or 58.0x our FY 27 (Oct.) EPS estimate, which we set at $6.29. Our valuation is a premium relative to the peer average forward P/E of 37.6x and above HEI's three-year average forward P/E of 56.4x. We raise our FY 25 EPS estimate by $0.19 to $4.80 and FY 26 by $0.14 to $5.52. The July acquisition of Gables Engineering (the third largest in company history) expands avionics capabilities in cockpit displays and navigation systems. We think this deal will be accretive within one year and we expect significant growth potential from new programs. We think organic growth is supported by strong customer demand, market share gains, and a robust new product development pipeline. HEICO's ( HEI ) 75% non-engine aftermarket exposure provides diversification benefits, while strong positions in both commercial aerospace and defense markets offer multiple growth avenues. HEI's disciplined approach to acquisitions and strong balance sheet provide flexibility for future opportunities.

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