Can't Fly? Buy Hexcel (HXL) Instead; It'll Fly for You - Cramer
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Price: $94.11 -3.76%
Rating Summary:
8 Buy, 18 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
8 Buy, 18 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Shares of Hexcel (NYSE: HXL) are in positive territory Tuesday following a bullish call by the Gandhi of Investment Theory, Jim Cramer.
According to Crames, aerospace composites-maker Hexcel is set to run following an analyst upgrade and dividend boost for Boeing (NYSE: BA) earlier in the week. On Monday, Morgan Stanley upgraded Boeing from Neutral to Overweight, and Boeing raised its quarterly dividend 4.8 percent to 44 cents, for a yield of 2.5 percent.
He says this is just the start of another seven-year run for the industry.
Hexcel derives 55 percent of sales from commercial airlines, with other sales from helicopter and windmill blades. Cramer points out Hexcel gets about 90 percent of commercial airline revenue from Boeing and peer Airbus. With Boeing's nearly-3,500 unit backlog, Hexcel will have a steady stream of work even if European issues persist.
With military budgets -- as well as commercial airline budgets -- continuing to be squeezed globally, there's even more incentive for governments to turn to composites which are lighter than metal counterparts and make aircrafts more fuel efficient. And that shift will send Hexcel shares soaring.
Hexcel shares are up 2.5 percent early Tuesday.
According to Crames, aerospace composites-maker Hexcel is set to run following an analyst upgrade and dividend boost for Boeing (NYSE: BA) earlier in the week. On Monday, Morgan Stanley upgraded Boeing from Neutral to Overweight, and Boeing raised its quarterly dividend 4.8 percent to 44 cents, for a yield of 2.5 percent.
He says this is just the start of another seven-year run for the industry.
Hexcel derives 55 percent of sales from commercial airlines, with other sales from helicopter and windmill blades. Cramer points out Hexcel gets about 90 percent of commercial airline revenue from Boeing and peer Airbus. With Boeing's nearly-3,500 unit backlog, Hexcel will have a steady stream of work even if European issues persist.
With military budgets -- as well as commercial airline budgets -- continuing to be squeezed globally, there's even more incentive for governments to turn to composites which are lighter than metal counterparts and make aircrafts more fuel efficient. And that shift will send Hexcel shares soaring.
Hexcel shares are up 2.5 percent early Tuesday.
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