UPDATE: Bank of America Upgrades HEICO Corporation to Buy Post Call with Management

Bank of America upgrades its rating on HEICO Corporation

from Neutral to Buy, but keeps its $54 price objective unchanged. Bank of America notes, "After Wednesday's conference call with management we are updating our model for 2012 and the outyears. We are lowering our FY12 estimate to $1.63 from $1.75 but leaving our outyear estimates unchanged. For FY12 we are maintaining our net sales forecast of $925mn (+21% Y/Y vs. management's outlook of 17-20% growth) but lowering our operating profit margin forecast to 18% from 19%. This is predominantly driven by a lower margin forecast at ETG of 22.2% vs. 25% previously. We are now assuming the business unit exits the year closer to 25% margins instead of full year average of 25%." HEI closed at $41.94 on Wednesday.