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Stock impact report

HEICO: Acquisition Strategy Going Strong, But Valuation Looks Stretched [Seeking Alpha]

Heico Corporation (HEI) 
Last heico corporation earnings: 2/25 04:15 pm Check Earnings Report
US:NYSE Investor Relations: heico.com/investors
Company Research Source: Seeking Alpha
The balance sheet carries $2.42 billion in long-term debt, which is a massive jump from $275 million by the end of reporting in 2022. Despite strong operational cash flows during 2024 and 2025, HEI has a suboptimal cash conversion ratio that needs to be addressed. Amidst robust industry tailwinds and management's ambitious diversification, HEI trades at a significant premium to peers, making its current valuation unsustainable. Given the stretched valuation, operational risks, and sector headwinds, I recommend a SELL rating on HEI with a price target of $131.29. Monty Rakusen/DigitalVision via Getty Images The aerospace maintenance, repair, and overhaul (MRO) industry may be boring, but it certainly is hot these days. Rising defense budgets, surging air travel, and multiple fleet modernization programs have given the industry strong tailwinds. Heico Corporation (NYSE: This article was written by Analyst's Disclosure: I/we have no stock, option or similar derivative posi Show less Read more
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