Heico (NYSE:HEI) was downgraded two notches to Underperform from Buy at BofA, which sees weaker than average air traffic growth as a yellow flag of caution for the commercial aerospace cycle.
"We have now seen four consecutive months of air traffic growth below the six year average of 6.4% and three consecutive months of sub-5% growth," wrote analyst Ronald Epstein, who kept his PT at $105.
Air traffic growth from the International Air Transport Association slowed again in May 2019 with only a 4.5% growth in revenue passenger kilometers, a measure of air traffic.
HEI -2.5% premarket
Source: Bloomberg First Word
Subscribe for full text news in your inbox