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On Monday, Stifel analysts revised their price target for Helios Technologies (NYSE:HLIO) stock, reducing it to $35 from the previous $58, while retaining a Buy rating on the shares. The stock, which has declined over 44% in the past six months, is currently trading at $27.10. According to InvestingPro analysis, HLIO appears undervalued at current levels. The adjustment reflects concerns over potential economic challenges ahead. Stifel’s analysis suggests that U.S. trade policies may trigger a modest industrial recession in the second half of 2025, extending into the first half of 2026.
The firm anticipates that the looming uncertainty could lead to diminished capital and operating expenditures among customers. Despite these concerns, InvestingPro data shows that HLIO maintains strong financial health with a current ratio of 2.77, indicating sufficient liquidity to meet short-term obligations. Additionally, the analysts foresee possible disruptions in supply chains that might compel Helios Technologies or its customers to decelerate production.
Stifel’s commentary on the situation highlighted the basis for their decision, stating, "We are reducing our target price on HLIO shares to $35 and maintaining our Buy rating. We are assuming U.S. trade policy leads to a modest industrial recession in 2H25 through 1H26. We assume uncertainty leads to lower customer capital and operating expenditures and that disruptions to supply chains could cause HLIO and/or its customers to slow production."
The revised price target by Stifel comes as the firm projects a cautious outlook for the industrial sector, influenced by trade policy implications. Despite this, the continued Buy rating indicates a belief in the underlying value and potential of Helios Technologies’ stock in the long term.
Helios Technologies, a company listed on the New York Stock Exchange, is now navigating through a period where strategic adjustments might be necessary to align with the projected economic conditions and maintain its market position. The company has demonstrated long-term stability through its 29-year track record of consecutive dividend payments. For deeper insights into HLIO’s financial health and growth prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Helios Technologies reported its fourth-quarter earnings for 2024, revealing a mixed financial performance. The company exceeded revenue expectations by reporting $179.5 million, surpassing the forecasted $176.21 million. However, it missed analyst expectations for earnings per share (EPS), delivering $0.33 against the anticipated $0.41. Despite this, Helios Technologies provided optimistic guidance for 2025, projecting revenue between $775 million and $825 million, with an adjusted EBITDA margin expected to range between 18.0% and 20.0%. Stifel analysts maintained a Buy rating on Helios Technologies, with a price target of $60.00, reflecting confidence in the company’s strategic initiatives and future growth prospects. Additionally, Helios Technologies declared a quarterly cash dividend of $0.09 per common share, continuing its 28-year streak of consistent payouts. The company’s commitment to shareholder returns is supported by its record operational cash generation in 2024, which exceeded $122 million. Helios Technologies’ leadership has been actively engaging with investors to articulate its growth strategies and operational goals, aiming to bolster investor confidence.
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