HEICO to Keep Flying Straight

Aside from original equipment manufacturers (OEM) and their subcontractors/suppliers, HEICO Corporation (HEI - Snapshot Report) purportedly is the world's largest independent manufacturer of jet engine and aircraft component replacement parts approved for use by the Federal Aviation Administration (FAA). It also manufactures various types of electronic equipment for the aviation, defense, space, medical, telecommunications and electronics industries.

Maintenance, repair and overhaul (MRO) of commercial equipment is at a heightened level because of increased usage, which engenders a fairly vibrant after-market. In addition, rising fuel costs are forcing the airlines to find ways to cut other expenses. Both of these drivers offer significant opportunities for HEICO to expand & flourish.

However, while robust levels of revenues and income are envisioned for HEI over the balance of the decade, we believe that HEI is close to fairly-valued at current levels and therefore have maintained our HOLD opinion.

Read the full analyst report on HEI