Heico's Engine Exposure Set to Fuel Organic Growth, RBC Says

Heico's (HEI) increased engine exposure is expected to continue driving organic growth for the company's flight support segment, RBC Capital Markets analysts said Thursday in a report.

The company is expected to report fiscal Q3 results on Monday.

Heico is poised to benefit from multiple sector tailwinds, including continued strength in the commercial aftermarket for engines and a steady defense portfolio within its electronic technologies business, RBC said.

Although Heico has lagged behind sector peers since fiscal Q1, strong results across the aerospace manufacturing industry are expected to bolster the flight support segment, the report said.

RBC increased its Q3 adjusted earnings estimate to $1.14 a share from $1.11.

RBC raised its price target on Heico stock to $335 from $315 and retained its outperform rating.

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