HLIO Stock Forecast & Price Target

Helios Technologies Inc. shows a promising outlook due to stabilization and improvement in its key end markets after years of decline, with all four business segments experiencing order growth over several months. The company has also been implementing self-help initiatives under new leadership, contributing to an optimistic earnings momentum projected for the second half of 2025. Additionally, the growth anticipated this year is expected to be driven by favorable comparisons and a lack of inventory destocking, further enhancing the company’s revenue generation potential moving forward.

Helios Technologies's stock outlook is negatively affected by its dependency on the Hydraulics segment, which is closely tied to cyclical end markets that may experience sales declines 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, this growth potential is vulnerable to broader economic conditions. Therefore, the reliance on the performance of cyclical markets raises concerns about the sustainability of sales growth and overall financial stability.