Hexcel Corp. (HXL) PT Raised to $65 at Jefferies

Jefferies analyst Sheila Kahyaoglu raised the price target on Hexcel Corp. (NYSE: HXL) to $65.00 (from $55.00) while maintaining a Hold rating.

The analyst comments "Incrementals from Here? Going forward, we est 2% wage inflation on consistent Headcount per Shipset (-40 bps in '26E), as well as 1% inflation on Materials pricing (net -30 bps). Material vols per shipset comes down slightly in '25-27E reflecting the impact from slower BGA/RJ growth. We est Fixed Costs +2% on an abs basis, but lower per shipset (+130 bps to '26E). All in production growing +13% CAGR in '25-27E drives 20% incrementals in 2026E (aero supplier avg of 29%) and 30% in 2027E. This implies an 11.7% margin in 2025E to 12.3% in 2026E (cons 13.5%) and 13.8% in 2027E (cons 14.9%). Every 100 bps of margin = 20c (9%) (Ex 1)."

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