UPDATE: RBC Capital Upgrades HEICO (HEI) to Outperform

RBC Capital analyst Ken Herbert upgraded HEICO (NYSE: HEI) from Sector Perform to Outperform with a price target of $175.00 (from $150.00).

The analyst comments "We are upgrading the shares of HEICO (HEI) from Sector Perform to Outperform, and increasing our price target to $175 from $150. HEI is trading at a premium relative to its historical valuation range, but we believe the stock will benefit from the expected closure of the Exxelia acquisition, continued strength in the commercial aftermarket, and the expected positive inflection in defense sales. HEI's strong FCF and M&A upside will limit potential downside, in our view. Our $175 price target is based on the blend of a 51x P/E multiple and a 32x EBITDA multiple applied to our FY24 estimates."

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 $151.70 yesterday.

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