Credit Suisse Upgrades HEICO (HEI) to Outperform

Credit Suisse upgraded HEICO (NYSE: HEI) from Neutral to Outperform with a price target of $86.00 (from $68.00), citing favorable strategic positioning and M&A upside,

Analyst Robert Spingarn commented, "We have long admired HEICO’s business, but until now had rated the shares Neutral due to the consistent and significant valuation premium. With a new fiscal year upon us, and the introduction of what will likely prove to be conservative guidance, an apparently robust M&A pipeline and favorable strategic positioning among suppliers, we now take a more constructive stance and upgrade to Outperform. Several attributes of the business drive our confidence: (1) consistently reliable FCF generation; (2) an extremely active M&A strategy that typically enables HEI to exceed guidance; (3) a desirable focus on high-margin aftermarket business; and (4) potential second-sourcing opportunities with the OEMs. We use a DCF methodology to arrive at our updated TP of $86."

For an analyst ratings summary and ratings history on HEICO click here. For more ratings news on HEICO click here.

Shares of HEICO closed at $75.63 yesterday.

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