UBS Reiterates Neutral Rating on HEICO (HEI) Following Q2 Earnings

UBS analyst Gavin Parsons reiterated a Neutral rating and $382.00 price target on HEICO (NYSE: HEI).

The analyst commented, "5% revenue and 11% EBIT beat driven by ETG (multiple strong end-markets called out), with FSG organic growth in-line with our estimate - suggesting aftermarket demand remains healthy (albeit slower than the F2Q outlier and LTM average). Organic growth was 14% (FSG +12%, ETG +18%) and operating margin expanded 200bps to 25.1% (140bps beat) and is another quarter that suggests upside to the company's framework. Strong free cash flow beat of $345mn vs cons of $210mn; net leverage improved to less than 1.6X (from 1.7X in F2Q). The release contains no indication of weakening commercial aftermarket signals or negative impacts from higher oil, with management specifically citing increased demand across all Flight Support product lines and continued strength in aerospace, defense and electronics. No formal guidance (typical for HEI) but growth expected to continue in both businesses."

For an analyst ratings summary and ratings history on HEICO click here. For more ratings news on HEICO click here.

Shares of HEICO closed at $351.05 yesterday.

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