Heico price target raised to $229 from $190 at Truist

Truist raised the firm’s price target on Heico to $229 from $190 and keeps a Buy rating on the shares after its Q4 earnings beat. The analyst notes that the company’s Wencor deal is tracking ahead of plan while its go-forward operating margins appear to be tracking above the firm’s prior projections, which likely places the FY24 Flight Support Group segment margins at 21% and above RBC’s 19.5% prior projection. The firm adds that the Flight Support Group revenues should grow at a double-digit organic rate in FY24, while improving defense sales should drive modest organic revenue acceleration for the Electronic Technologies Group segment. RBC also sees the commercial aero aftermarket providing tailwinds to Heico’s operations.