CFRA Upgrades Hexcel Corp. (HXL) to Hold, 'well positioned with an over-indexed exposure to Airbus'

CFRA analyst Matthew Miller upgraded Hexcel Corp. (NYSE: HXL) from Sell to Hold with a price target of $69.00 (from $57.00).

The analyst comments "We increase our 12-month target by $12 to $69, or 25.1x our 2025 EPS estimate, a discount to HXL's three-year average forward P/E of 36.2x but nearly in line with peers, which are trading at an average forward P/E of 26.4x. We trim our 2024 EPS estimate by $0.08 to $2.07 and raise our 2025 EPS forecast by $0.07 to $2.75. HXL reported Q3 adj. EPS of $0.47 vs. $0.38, $0.01 above consensus, on a sales miss of 1.3%. After solid growth in 2024 (we expect 8% sales growth and 14% adj. EPS growth), we are forecasting accelerated growth in 2025 (13% sales growth and 33% adj. EPS growth). We note continued supply chain issues and struggles at commercial aircraft original equipment manufacturers (OEMs), but we think this has resulted in an attractive entry point for HXL. HXL holds the #1 position in lightweight composites, which is experiencing strong secular growth. HXL is well positioned with an over-indexed exposure to Airbus, which is poised to outperform Boeing, with a faster ramp in aircraft deliveries in 2025."

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 $63.60 yesterday.

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