RBC Capital Upgrades Hexcel Corp. (HXL) to Outperform, 'FCF upside, high quality exposure to aero cycle'

RBC Capital analyst Ken Herbert upgraded Hexcel Corp. (NYSE: HXL) from Sector Perform to Outperform with a price target of $85.00 (from $75.00).

The analyst comments "We are upgrading shares of Hexcel (HXL) from Sector Perform to Outperform and increasing our price target to $85 from $75. While 2H23 growth expectations are modest, we anticipate an acceleration in aerospace growth in 2024-2025. HXL represents a high quality aerospace supplier that we believe will deliver better than expected margins and FCF upside. We can appreciate the valuation pushback, but we believe execution, capital allocation and a strengthening widebody aircraft outlook will be positive catalysts. Our price target is based on a 22x multiple applied to our 2025 FCF estimate of ~$3.85/share."

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 $69.11 yesterday.

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