UPDATE: Jefferies Reiterates On Heico As Volume Leverage Dims Performance

In a report published Thursday, Jefferies analyst Sheila Kahyaoglu reiterated a Hold rating on Heico (NYSE: HEI), but lowered the price target from $61.00 to $59.00.

In the report, Jefferies noted, “Heico delivered FQ2:14 EPS of $0.42 vs. our est./cons of $0.44/$0.40. FQ2:14 results underlined Heico's ability to deliver above-average organic growth, however, volume leverage was limited. Management raised its net income expectations for FY14 to 12-14% from 10-12%, this implies EPS range of $1.71-$1.74. Our FY14 EPS estimate of $1.76 incorporates slightly lower profitability at ETG offset by noncontrolling interest. Our FY15 EPS estimate is $2.00.”

Heico closed on Wednesday at $54.19.