Stifel Increases Price Target for Helios Technologies (HLIO) to $43 | HLIO Stock News

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4 days ago
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Stifel has raised its price target for Helios Technologies (HLIO, Financial), moving it up from $39 to $43, and maintains a Buy rating for the stock. According to the analyst, discussions with Helios' management and an examination of industry channels suggest a robust and consistent demand. This positive outlook might encourage several firms to adjust their guidance upward during their Q2 earnings reports.

Wall Street Analysts Forecast

Based on the one-year price targets offered by 4 analysts, the average target price for Helios Technologies Inc (HLIO, Financial) is $45.25 with a high estimate of $52.00 and a low estimate of $40.00. The average target implies an upside of 24.72% from the current price of $36.28. More detailed estimate data can be found on the Helios Technologies Inc (HLIO) Forecast page.

Based on the consensus recommendation from 5 brokerage firms, Helios Technologies Inc's (HLIO, Financial) average brokerage recommendation is currently 1.4, indicating "Buy" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.

Based on GuruFocus estimates, the estimated GF Value for Helios Technologies Inc (HLIO, Financial) in one year is $46.17, suggesting a upside of 27.26% from the current price of $36.28. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Helios Technologies Inc (HLIO) Summary page.

HLIO Key Business Developments

Release Date: May 07, 2025

  • Revenue: $195 million, exceeding the top end of guidance range ($190 million).
  • Adjusted EBITDA Margin: 17.3%.
  • Cash from Operations: $19 million, a 7% increase over last year's first quarter.
  • Inventory Reduction: 11% compared to the prior year.
  • Debt Reduction: Paid down $4 million in debt, a 15% reduction over last year.
  • Liquidity: Nearly $400 million available.
  • Gross Margin: Contracted 110 basis points year over year.
  • Operating Margin: 8.7%, down 90 basis points.
  • Adjusted Operating Margin: 13.4%, down 110 basis points.
  • Effective Tax Rate: 23.5%.
  • Diluted EPS: $0.22, down 21% over last year.
  • Diluted Non-GAAP EPS: $0.44, down 17% over last year, but up 33% over the fourth quarter.
  • Hydraulic Sales Decline: 11% over the prior year period.
  • Electronics Segment Sales: Up 24% year over year in Asia Pacific.
  • Free Cash Flow Conversion Rate: 258% trailing 12 months.
  • Capital Expenditures: $6.1 million, or 3% of sales.
  • Net Debt to Adjusted EBITDA Leverage Ratio: 2.7 times, down from 3.1 times a year ago.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Helios Technologies Inc (HLIO, Financial) exceeded its first quarter sales estimates with $195 million, surpassing the top end of its guidance range.
  • The company achieved a 7% increase in cash from operations compared to the previous year, despite a sales contraction.
  • Helios Technologies Inc (HLIO) reduced its inventory by 11% year-over-year, improving working capital efficiency.
  • The company paid down $4 million in debt during the first quarter, marking the seventh consecutive quarter of debt reduction.
  • Helios Technologies Inc (HLIO) is seeing positive signs in order intake, with orders exceeding sales for five consecutive months.

Negative Points

  • Sales declined in all regions compared to the previous year, with foreign exchange negatively impacting sales by $2.3 million.
  • Gross margin contracted by 110 basis points year-over-year due to lower volume and higher material costs.
  • Operating income decreased by $3.3 million, with a 90 basis point decline in operating margin.
  • Diluted EPS fell by 21% compared to the previous year, primarily due to lost leverage from an 8% decline in sales.
  • The company faces potential $15 million tariff-related cost impacts in the second half of 2025, creating uncertainty in the macro environment.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.