Heico price target raised to $235 from $225 at RBC Capital

RBC Capital raised the firm’s price target on Heico to $235 from $225 and keeps an Outperform rating on the shares ahead of its Q2 results next week. The stock continues to lag its aerospace peers, but the outlook for margins in the Electronic Technologies Group segment is improving, the analyst tells investors in a research note. RBC adds that it sees continued upside potential in the Flight Support Group segment’s organic growth and margins, both of which should be positive catalysts for the stock. The firm contends that Heico stands to benefit from the commercial aftermarket “super-cycle” and positive re-ratings in the sector.