Morgan Stanley Raises Heico Price Target to $305 Amid Aerospace Demand

Morgan Stanley has raised its price target for Heico (HEI) to $305 from $270, maintaining an Equal Weight rating. The investment firm cites robust demand in the aerospace and defense sectors, but notes that growth prospects are balanced against the stock's recent performance and valuation compared to historical metrics and industry peers. The average one-year target price for Heico is $299.95, with a high estimate of $360.00 and a low estimate of $240.00.

Morgan Stanley has recently increased its price target for Heico (HEI) to $305, up from the previous $270, while maintaining an "Equal Weight" rating. The investment firm attributes this adjustment to robust demand in the aerospace and defense sectors. However, the firm also acknowledges that growth prospects are balanced against the stock's recent performance and valuation, which are compared to historical metrics and industry peers [1].

The average one-year target price for Heico, as per 16 analysts, stands at $299.95, with a high estimate of $360.00 and a low estimate of $240.00 [1]. Additionally, the consensus recommendation from 21 brokerage firms indicates an "Outperform" status, with an average rating of 2.3 [1]. This suggests that analysts are optimistic about Heico's prospects.

Heico reported strong Q2 2025 earnings, with a 15% increase in sales and a 27% rise in net income. The company's shares rose by 20% during the quarter, driven by the leadership transition and solid earnings report [2]. Despite these positive developments, investors should be aware of potential risks such as cost pressures and defense budget reductions [2].

The latest price prediction for Heico, as of June 4, 2025, suggests a potential drop to $286.87 by July 4, 2025, representing a 4.12% decrease from the current price of $298.35 [3]. However, the technical indicators show a bullish sentiment with a Fear & Greed Index of 39, indicating a cautious market outlook [3].

In conclusion, while Morgan Stanley's price target increase reflects optimism in Heico's growth prospects, investors should consider the potential risks and the overall market sentiment before making investment decisions.

References:
[1] https://www.gurufocus.com/news/2898709/heico-hei-stock-sees-price-target-raised-by-wells-fargo-hei-stock-news
[2] https://simplywall.st/stocks/us/capital-goods/nyse-hei/heico/news/heico-nysehei-reports-q2-sales-surge-to-us1098m-and-net-inco
[3] https://coincodex.com/stock/HEI/price-prediction/