Key Takeaways:
- HEICO's recent acquisition of Rosen Aviation is expected to boost earnings within a year.
- Analysts forecast a potential upside of 11.91% for Heico Corp (HEI, Financial) with a target price average of $270.33.
- The GF Value suggests a 24.06% upside, indicating possible undervaluation.
HEICO's Strategic Acquisition
HEICO Corporation (HEI), through its subsidiary Mid Continent Controls, has strategically acquired Rosen Aviation. While the acquisition price remains undisclosed, this move marks the company's fourth acquisition in six months. HEICO aims to integrate Rosen Aviation effectively, anticipating the acquisition to enhance earnings within a year. As the company strengthens its portfolio, leadership changes are also on the horizon with Laurans A. Mendelson set to transition to Executive Chairman in May 2025.
Analyst Perspectives and Price Forecast
According to the insights from 16 analysts, the average target price for Heico Corp (HEI, Financial) is $270.33. This range includes a high estimate of $320.00 and a low of $219.33, offering investors a potential upside of 11.91% from the current trading price of $241.56. For a comprehensive analysis, you can visit the Heico Corp (HEI) Forecast page.
Brokerage Recommendations
The consensus from 21 brokerage firms gives Heico Corp (HEI, Financial) an average recommendation of 2.3, indicating an "Outperform" rating. This scale, ranging from 1 (Strong Buy) to 5 (Sell), reflects a strong market sentiment towards the company's robust performance and strategic initiatives.
Evaluating Heico Corp's GF Value
GuruFocus' proprietary GF Value metric estimates Heico Corp (HEI, Financial) to have a projected value of $299.69 in a year. This suggests a potential upside of 24.06% from the current price of $241.56, indicating that the stock might be undervalued. GF Value leverages historical trading multiples, past business growth, and future business performance estimates to gauge fair value. For detailed data, the Heico Corp (HEI) Summary page offers deeper insights.
