HLIO Stock Forecast & Price Target

Helios Technologies is poised for growth, primarily due to favorable comparisons from previous periods and a lack of inventory de-stocking, which augurs well for its revenue in the Hydraulics segment. The stabilization and improvement of key end markets, combined with growing order volumes across all business segments, indicate a potential earnings momentum in the latter half of 2025. Additionally, the emergence of self-help initiatives under new leadership further strengthens the company's capacity to capitalize on market recovery and outperform in its sector.

Helios Technologies's outlook is negatively influenced by its reliance on cyclical end markets within its Hydraulics segment, which may face significant sales growth challenges during economic downturns. Despite the potential for a 50% growth in its current base and strong incremental margins due to low growth capital expenditure needs, the company remains vulnerable to external economic pressures. The combination of these factors raises concerns about future revenue stability and overall financial resilience in less favorable economic conditions.