HEICO

HEI · NYSE

$305.21−$2.96 (−0.96%)TodayMarket closed · Oct 20, 7:30 PM ET

Prev close $308.17

HEI analyst rating

HoldConsensus of 11 analysts over the last 12 months. 45% rate it a buy.

Strong buy0
Buy5
Hold6
Underperform0
Sell0

12-month price target · 22 analysts

Average $404.18 (+32.4% upside)

Low: $301.90
Now: $305.21
High: $515.55

Upgrades and downgrades

The latest rating actions, newest first

HEI analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Morgan Stanley	Oct 19, 2026	Maintains	Equal-Weight	$365.00 → $345.00	61%
TD Cowen	Oct 9, 2026	Maintains	Hold	$350.00 → $330.00	63%
Wells Fargo	Sep 30, 2026	Maintains	Equal-Weight	$350.00 → $335.00	69%
Guggenheim	Sep 15, 2026	Initiates	Neutral	—	71%
Morgan Stanley	Sep 2, 2026	Maintains	Equal-Weight	$370.00 → $365.00	61%
Citigroup	Aug 28, 2026	Maintains	Buy	$429.00 → $441.00	27%
Jefferies	Aug 27, 2026	Maintains	Buy	$425.00 → $430.00	55%
UBS	Aug 27, 2026	Maintains	Neutral	$382.00 → $396.00	49%
Deutsche Bank	Aug 19, 2026	Maintains	Buy	$403.00 → $421.00	71%
Citigroup	Aug 13, 2026	Maintains	Buy	$410.00 → $429.00	27%

The case for and against

Updated Oct 15, 2026

Bull case

Heico is well positioned on three durable fundamentals: its dominant FAA-PMA aftermarket franchise, where over 19,500 approvals and 30% to 40% lower pricing versus OEM parts support share gains as airlines and militaries seek lower costs, and its ETG segment, which is benefiting from stronger defense and space demand. ETG revenue reached a record $484 million in F3Q26, with organic growth of 18% and adjusted EBITDA margin expanding to 31.5%, while F2Q26 revenue of $1,376 million rose 25% year over year and adjusted EBITDA margin was 29.7%. The outlook is further strengthened by disciplined, accretive M&A, with $1.1 billion deployed in fiscal 2026, net debt to EBITDA improving to 1.57x, and operating cash flow of $816 million in 9M FY26 supporting continued acquisition capacity.

Bear case

Heico is vulnerable to a slowdown in the commercial aftermarket, because 58% of consolidated sales come from commercial aviation and the Flight Support Group’s unusually strong post-COVID margin expansion may be nearing a ceiling as global aviation normalizes. The stock also appears difficult to re-rate from a 186% premium to aftermarket peers, since the current valuation already reflects exceptional execution while further upside to estimates looks limited amid potentially sluggish margins and only 20 to 30 bps of normal annual improvement. Fundamental risk is amplified by a highly acquisitive model, with goodwill and intangibles at 60% of total assets at FYE 2025 after roughly 107 acquisitions since 1990, leaving the company exposed to integration missteps, impairments, and weaker leverage capacity.

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