Helios Tech rises after KeyBanc upgrades to 'overweight' on market recovery

Shares of engineered motion control and electronic controls tech co Helios Technologies HLIO.N climbs 3% to $32 in premarket trade

KeyBanc upgrades rating to 'overweight' from 'sector weight', PT unchanged at $40

Brokerage says co's markets are starting to recover after a long slowdown; while 2025 sales are still expected to be weak, management is cautiously optimistic about the second half of the year

However, brokerage says co is tackling profit issues caused by too much factory space and equipment; says co is thinking about selling off some parts and focusing on core business to counter this

"We believe HLIO will have impressive leverage on volume improvement as capacity utilization improves in tandem with end-market demand" - KeyBanc

All five brokerages rate the stock "buy" or higher; their median PT is $43 - data compiled by LSEG

As of last close, stock had fallen 29.4% YTD