Heroux-Devtek Inc (HRX:CA), a key player in the aerospace and defense industry, is set to release its Q3 2025 earnings report on February 7, 2025.
As a leading manufacturer of aircraft landing gear and aerospace components, the company has demonstrated significant growth, but analysts remain divided on its outlook. While some highlight its strong fundamentals, others express concerns about its valuation and market volatility.
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Expected Q3 Earning Report of Heroux-Devtek Inc:
Heroux-Devtek’s upcoming earnings report is expected to show an EPS of CAD 0.39, reflecting an increase from Q3 2024’s reported EPS of CAD 0.29. Revenue is forecasted between CAD 160 million and CAD 180 million, supported by a strong CAD 951 million backlog, signaling sustained demand in both civil and defense segments.
Despite the company’s impressive 112.7% capital gain over the past year, analysts remain cautious. The stock’s price-to-earnings (P/E) ratio of 20.92 suggests it may be trading at a premium compared to sector peers, raising concerns about potential overvaluation.
Stock Target Advisor’s Analysis on Heroux-Devtek Inc:
According to Stock Target Advisor, the average analyst target price for Heroux-Devtek is CAD 32.50, with the stock currently trading at CAD 32.16. The overall rating remains ‘Sell’, with the analysis being slightly bearish, indicating a mix of strengths and risks.
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Recent Analyst Ratings and Target Prices:
Analyst sentiment remains mixed, with TD Securities maintaining a cautious stance while Scotia Capital and Desjardins Securities show optimism:
- TD Securities: Maintains ‘Sell’ rating, target price CAD 32.50
- Scotia Capital: Buy rating, target price CAD 27
- Desjardins Securities: Buy rating, target price CAD 37.
- National Bank Financial: Outperform rating, target price CAD 29.
Conclusion:
With Heroux-Devtek’s Q3 earnings report scheduled for February 7, 2025, investors and analysts will closely watch whether the company can meet or exceed expectations.
The strong backlog and revenue growth support a bullish case, but concerns over valuation and volatility temper enthusiasm. Investors should monitor the results closely to evaluate potential risks and opportunities.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
