HLIO Stock Forecast & Price Target

Helios Technologies has shown signs of recovery, with its key end markets stabilizing after a prolonged decline, resulting in order growth across all four business segments. The company is expected to benefit from easier comparisons and a lack of destocking, contributing to its anticipated earnings momentum in the latter half of 2025. Additionally, under new leadership, multiple self-help initiatives are being implemented, indicating a positive outlook for the company's performance as industrial markets begin to improve.

Helios Technologies's stock outlook is negatively impacted by its reliance on cyclical end markets within the Hydraulics segment, which can lead to decreased sales growth during economic downturns. Despite the potential for a 50% increase in current capacity and strong incremental margins due to low growth capital expenditures in the near term, there remains an inherent risk associated with the cyclical nature of its primary revenue stream. This cyclicality could offset any positive growth projections, thereby creating uncertainty around the company's ability to maintain revenue stability across different economic conditions.