JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Monday, Jefferies analyst Sheila Kahyaoglu increased the price target for HEICO (NYSE:HEI) shares to $320 from the previous $305, while keeping a Buy rating on the stock. The stock, currently trading at $280.21, has shown impressive momentum with a 29.45% return over the past year. The adjustment comes ahead of the company’s scheduled second fiscal quarter (FQ2) earnings report, set for May 27, after market close. According to InvestingPro analysis, HEICO is currently trading above its Fair Value, with a P/E ratio of 54.18.
Kahyaoglu anticipates HEICO will report FQ2 earnings per share (EPS) of $1.01, which is marginally below the consensus estimate of $1.03. The forecast includes a prediction of a sequential decline in organic growth for the company’s Electronic Technologies Group (ETG), projecting a 2% increase compared to the 11% growth seen in the first fiscal quarter. This slowdown is attributed to a stall in the Other Electronics segment, which represents 20% of ETG’s revenue. Despite these near-term projections, InvestingPro data shows HEICO maintains strong fundamentals with a 23.06% revenue growth and an overall Financial Health score of "GREAT."
In the report, the analyst also revised upward the fiscal year 2025 earnings per share estimate by 1% to $4.45, up from $4.40. This revision is based on the expected positive impact of recent mergers and acquisitions, specifically citing contributions from Millennium and Rosen Aviation, which are part of HEICO’s Flight Support Group (FSG).
HEICO, known for its manufacturing in the aerospace, defense, and electronics sectors, will provide investors with a detailed look at its financial performance for the quarter on May 27. The company’s performance in the ETG segment and the contributions from its acquisitions will be points of interest for investors and analysts alike, as they assess the company’s growth trajectory and future earnings potential.
In other recent news, HEICO Corporation reported strong financial results for the first quarter of fiscal year 2025, with revenue reaching approximately $1.03 billion, marking a 15% increase from the previous year. The company also achieved a notable expansion in its operating margin, which improved by roughly 190 basis points year-over-year. Following these results, several analyst firms adjusted their price targets for HEICO. BofA Securities raised its price target to $320, maintaining a Buy rating, while Truist Securities increased its target to $294, also with a Buy rating. Additionally, RBC Capital Markets set a new price target of $285, reiterating an Outperform rating.
Moody’s affirmed HEICO’s Baa2 rating and shifted its outlook to positive, citing the company’s robust business profile and expected solid earnings growth. HEICO’s liquidity remains strong with a revolving credit facility of $2 billion, of which $1.1 billion has been drawn. In corporate governance news, HEICO’s shareholders recently approved the re-election of its board of directors, executive pay, and the appointment of Deloitte & Touche LLP as its auditor. These developments reflect HEICO’s solid financial performance and continued investor confidence.
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