HEICO (HEI) is expected to sustain revenue growth of high-single digit to low-double digit into fiscal 2026, driven by strong aftermarket demand trends, price realization and rising demand from global defense markets, Truist Securities said in a note Tuesday.

The aerospace and electronics company on late Monday reported fiscal Q3 earnings and revenue that beat analysts' expectations.

Truist raised its revenue guidance to $4.45 billion from $4.44 billion for fiscal 2025 and to $4.86 billion from $4.77 billion for fiscal 2026. Analysts surveyed by FactSet expect $4.38 billion for fiscal 2025 and $4.75 billion for fiscal 2026.

Truist also estimates Heico's Flight Support Group operating margins to exceed 25% over the next 12 to 18 months.

HEICO's strong track record for reliability and cost efficiency with its US Federal Aviation Administration-approved products could make the company a viable supplier of alternative aircraft replacement parts for the US government, aligning with the administration's focus on boosting defense investment while reducing costs, Truist said.

Truist maintained its buy rating on the stock and raised its price target to $366 from $352.

Shares of the company were up 8.9% in recent Tuesday trading.

Price: 332.50, Change: +27.16, Percent Change: +8.90