Deutsche Bank Reiterates a 'Hold' on Hexcel (HXL); Shares Fully Valued

June 8, 2009 10:24 AM EDT

Deutsche Bank reiterates a 'Hold' on Hexcel (NYSE: HXL), raises price target from $10 to $13.

Deutsche analyst says, "Confidence in long term growth story but short term picture weakens. Our recent road show with HXL found management in confident mood about the long term Composite secular growth story, but leery about short term events in several key end markets including Commercial Aerospace: sharp declines in Regional Jet/Business Jet volumes and potential Boeing/Airbus production cuts; Space & Defense: likely termination of F22 and C17 production, which account for a combined 15% of segment revenues; and Industrial: European wind volumes could come under pressure as suggested by 10% employee reduction at key customer (Vestas)."

"We take this opportunity to lower our 2009E EPS from 84c to 79c to reflect more pressure in BJ/RJ volumes, lower European Wind volumes and we have slightly eased back our 2H margins as a result of the weaker USD and higher oil prices. For 2010, we have lowered our EPS estimate by 7c to 64c, primarily to reflect downside risk in Space & Defense from lower F22 and C17 volumes."

To see more analyst ratings on HXL Click Here.

Hexcel Corporation (Hexcel) is an advanced composites company.

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