Goldman Sachs Upgrades Hexcel Corp. (HXL) to Buy

January 7, 2013 7:29 AM EST
Get Alerts HXL Hot Sheet
Price: $50.50 -1.12%

Rating Summary:
    10 Buy, 8 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 35 | Down: 30 | New: 8
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Goldman Sachs upgraded Hexcel Corp. (NYSE: HXL) from Neutral to Buy with a price target of $35.00 (from $29.00).

The firm said Hexcel will be a key beneficiary from the share shift to composites from metal on next-generation large commercial aircraft. This provides excellent visibility into several years of double-digit organic revenue growth, the firm also said.

Analyst note the firm is moving from several years of capacity investment to support that growth, into the harvest phase. They expect CapEx to decline steadily and free cash and returns on capital to improve significantly.

Goldman raised 2013/2014E EPS to $1.81/2.17 from $1.75/1.95 to better reflect the 787 ramp, slightly higher incremental margins, and share repurchase.

For an analyst ratings summary and ratings history on Hexcel Corp. click here. For more ratings news on Hexcel Corp. click here.

Shares of Hexcel Corp. closed at $28.69 yesterday.

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