Stifel maintains Buy rating on Helios Tech, target $58

On Tuesday, Stifel analysts maintained their Buy rating on Helios Technologies (NYSE:HLIO) with a steady price target of $58.00, representing a significant premium to the current stock price of $34.71. Following investor meetings in Boston last week with Helios Technologies’ CEO Sean Bagan and VP of Investor Relations Tania Almond, the analysts reported a reinforced understanding of the company’s potential and leadership’s priorities. The $1.16 billion market cap company has seen its stock decline 22% year-to-date.

The meetings provided Stifel analysts with insights into the strategic direction under CEO Sean Bagan’s stewardship. The discussions highlighted the journey ahead for Helios Technologies as it aims to bolster investor confidence, particularly as the stock trades near its 52-week low of $33.10. The reaffirmed $58 price target reflects Stifel’s continued optimism about the company’s prospects, despite recent market challenges.According to InvestingPro analysis, Helios Technologies shows strong financial health with liquid assets exceeding short-term obligations and a healthy current ratio of 2.77. Get access to 7 more exclusive ProTips and comprehensive financial analysis with InvestingPro.

Helios Technologies has been focusing on articulating its growth strategies and operational goals under the new leadership. The investment community’s reception to these efforts is critical as the company navigates its path forward.

Stifel’s endorsement comes at a time when investor confidence plays a pivotal role in a company’s success. The analysts’ reiterated Buy rating suggests a positive outlook on Helios Technologies’ stock performance and valuation.

Helios Technologies, with its leadership team actively engaging with investors, is working to clarify its objectives and long-term plans. The endorsement by Stifel indicates a belief in the company’s ability to execute its strategies and deliver value to shareholders.

In other recent news, Helios Technologies reported fourth-quarter earnings for 2024, revealing a revenue of $179.5 million, which exceeded both Stifel’s and the market’s expectations. However, the company’s earnings per share (EPS) fell short of predictions, coming in at $0.33 compared to the expected $0.41. Despite the earnings miss, Helios Technologies announced a $100 million share repurchase program, reflecting confidence in its future performance. Stifel analysts maintained their Buy rating with a $60 price target for Helios, noting the company’s strong revenue performance despite a higher-than-expected tax rate impacting EPS.

The company also provided guidance for 2025, projecting revenues between $775 million and $825 million, with an adjusted EBITDA margin expected to be between 18.0% and 20.0%. For the first quarter of 2025, Helios anticipates revenue ranging from $185 million to $190 million, slightly below market expectations. Helios Technologies continues its 28-year streak of consecutive quarterly dividends, recently declaring a dividend of $0.09 per share, signaling robust financial health and commitment to shareholder returns.

Additionally, Helios highlighted its strategic initiatives, including a focus on operational efficiency and product innovation, which helped mitigate the challenges faced in 2024. The company reduced its total debt by $75 million and achieved record cash from operations of $122 million for the year. Helios Technologies’ outlook for 2025 includes an emphasis on enhancing shareholder value and new product developments, with expectations of stronger performance in the latter half of the year.

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