HEICO (HEI) PT Raised to $390 at UBS

UBS analyst Gavin Parsons raised the price target on HEICO (NYSE: HEI) to $390.00 (from $371.00) while maintaining a Neutral rating.

The analyst comments "We are raising our EBITDA estimates following a strong F2Q beat across the board with 18% organic growth (FSG 19%, ETG 17%) and segment EBIT margins 230bps above consensus. Management has seen no aftermarket slowdown to date from the Middle East conflict/higher oil prices, with airline cost pressure in fact driving more discussions about PMA adoption. Defense demand is also strong, in particular missiles/munitions. We expect HEI to continue compounding earnings at a double digit pace and do expect the current cost environment - both fuel and OEM parts - improves the PMA value proposition; but we do expect retirements to accelerate in the coming years which poses a headwind to HEICO's TAM (at least temporarily). We remain Neutral."

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