HEICO Corporation (HEI, Financial) has broadened its reach in the aviation sector by acquiring Rosen Aviation through its subsidiary Mid Continent Controls (MC2). The acquisition involves an all-cash deal, though specific financial terms have not been revealed. HEICO anticipates that this strategic move will enhance its earnings within the year following the acquisition.
Rosen Aviation, based in Eugene, Oregon, is renowned for its in-flight entertainment products, primarily focusing on in-cabin displays and control panels tailored for the business and VVIP aviation segments. Following the acquisition, Rosen will operate as a wholly-owned subsidiary of MC2. MC2 specializes in the design and manufacturing of proprietary in-cabin power and entertainment systems for business jets, providing a complementary fit with Rosen's offerings.
This transaction is HEICO's fourth acquisition in half a year, highlighting the company's commitment to expanding its technological capabilities and market presence. The integration of MC2 and Rosen aims to harness significant synergies by combining their expertise to offer a wider array of aircraft interior in-flight entertainment solutions. This integration is expected to result in state-of-the-art designs and equipment for aircraft manufacturers, operators, completion centers, and subsystem suppliers.
Both Rosen and MC2 are part of the HEICO Electronic Technologies Group's Radiant Power family. Leadership continuity is ensured as Thomas Hemphill, the President of MC2, will oversee the operations of both businesses.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 16 analysts, the average target price for Heico Corp (HEI, Financial) is $270.33 with a high estimate of $320.00 and a low estimate of $219.33. The average target implies an upside of 10.46% from the current price of $244.74. More detailed estimate data can be found on the Heico Corp (HEI) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, Heico Corp's (HEI, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Heico Corp (HEI, Financial) in one year is $299.69, suggesting a upside of 22.45% from the current price of $244.74. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Heico Corp (HEI) Summary page.
