Helios在首席执行官离职后在Keybanc的评级被下调;股价下跌

Helios Technologies (NYSE:HLIO) late Monday was downgraded to Sector Weight from a previous investment rating of Overweight by analysts at KeyBanc Capital Markets. They said the maker of industrial hydraulics and electronics faces greater uncertainty after announcing its chief executive had been placed on paid leave.

Shares of Helios (HLIO) fell about 10% in premarket trading Tuesday.

“The uncertainty around the company’s future leadership creates an overhang that is difficult to ignore,” Jeffrey Hammond, analyst at KeyBanc, said in a July 8 report. “We find it prudent to step away and focus on other names with more clear catalysts.”

Helios (HLIO) on Monday said President and Chief Executive Josef Matosevic on July 1 had been placed on paid leave following allegations of a possible violation of the company’s code business conduct and ethics.

The company’s board appointed Chief Financial Officer Sean Bagan as interim president and chief executive. Chairman of the Board Philippe Lemaitre was appointed executive chairman.

Helios’s (HLIO) efforts to transform its business into a higher-margin systems provider rather than a maker of components are at greater risk, while softening demand in construction and agricultural markets also is a concern, according to KeyBanc.

“Given unsupportive end markets and poor visibility into a cyclical inflection, we feel some caution is warranted until signs of a more normalized operating environment become apparent,” KeyBanc said.