Morgan Stanley: Continued high prosperity in the aerospace industry, raises target price for HEICO Corporation (HEI.US) to $330.

Morgan Stanley analyst Kristine Liwag released a research report, raising the target price of HEICO Corporation (HEI.US) from $305 to $330, while maintaining a "hold" rating. This upward revision reflects the strong performance of the aerospace sector - the sector's current valuation multiples have reached historical highs. Morgan Stanley believes that the expansion of valuation multiples demonstrates the industry's resilience, and expects the positive development trend to continue. The analyst pointed out that in the second quarter of the 2025 fiscal year, HEICO Corporation set historical records for both consolidated operating profit and net sales, with year-on-year growth of 19% and 15% respectively. Operating cash flow increased significantly by 45%, reaching $2.047 billion. In terms of business segments, the Flight Support business unit saw a 19% increase in net sales to $7.671 billion, while the Electronic Technologies business unit saw a 7% increase in net sales to $3.422 billion. However, risks to be aware of include: potential cuts in defense, aerospace, or homeland security expenditures by US and overseas customers, which could impact the company's sales. In addition, intensified competition from existing competitors and new market entrants could lead to a reduction in market share. Challenges in product development or manufacturing processes could also increase costs and delay sales deliveries. HEICO Corporation is primarily engaged in the research, development, manufacturing, and sales of aerospace, defense, and electronic products and services, with operations spanning the US and global markets.