HEICO (HEI) is set to continue market share gains with its growing Parts Manufacturer Approval, or PMA, product portfolio and continued merger and acquisition transactions, RBC Capital Markets said in a Friday note.
The company's recently closed acquisition of Axillon Fuel Containment, which was renamed as Rockmart, expands its PMA and defense business and is estimated to increase the Electronic Technologies Group's growth by about 10%, RBC said.
Another catalyst is the missile and missile defense portfolio under HEICO's Flight Support Group, which is expected to sustain volume upside, the investment firm added.
RBC said it raised its 2026 and 2027 growth outlook for the company to reflect its recent mergers and acquisitions. The investment firm now estimates 2026 adjusted earnings of $5.50 per diluted share on revenue of $5.06 billion, compared with its previous forecast of $5.34 in adjusted EPS on revenue of $4.94 billion.
RBC also reiterated its outperform rating and $375 price target on HEICO.
Price: 329.97, Change: -1.01, Percent Change: -0.30
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