BofA Securities raises Heico stock price target to $400 on market share gains

Published 05/09/2025, 11:16
BofA Securities raises Heico stock price target to $400 on market share gains

Investing.com - BofA Securities raised its price target on HEICO (NYSE:HEI) to $400.00 from $355.00 on Friday, while maintaining a Buy rating on the aerospace and electronics company’s stock. The company, currently trading at $322.29 with a market capitalization of $44.8 billion, has demonstrated strong financial health according to InvestingPro metrics.

The price target increase reflects HEICO’s continued benefits from its decentralized, nimble operations and focus on lower pricing, which is driving market share gains, according to BofA Securities. This strategy has contributed to impressive revenue growth of 13.5% over the last twelve months, though InvestingPro analysis indicates the stock is currently trading above its Fair Value.

The firm noted that HEICO’s organic growth remains largely driven by volumes as the company’s offerings deliver cost savings compared to original equipment manufacturer parts and more price-aggressive competitors.

BofA Securities highlighted that while inventory levels remain in flux across the industry, HEICO’s tactical management of its business lines has enabled it to successfully navigate supply chain and destocking pressures.

The firm reiterated its Buy rating on HEICO stock while increasing both its estimates and price objective to $400 from the previous target of $355.

In other recent news, HEICO Corporation reported its third-quarter 2025 earnings, surpassing analyst expectations with an earnings per share of $1.26, compared to the forecasted $1.12. The company’s revenue reached $1.15 billion, exceeding predictions of $1.11 billion and marking a 16% year-over-year growth. Analysts have responded to these results with mixed adjustments to their price targets for HEICO. RBC Capital lowered its price target to $350 from $355, citing a margin miss but maintained an Outperform rating. Conversely, Truist Securities increased its price target to $366, highlighting strong demand and high margins in the Flight Support Group. Stifel also raised its price target to $360 from $352, attributing the increase to HEICO’s strong earnings performance. These developments reflect the company’s continued growth and the varied perspectives of financial analysts.

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