Goldman Sachs Downgrades Hexcel Corp. (HXL) to Sell on Valuation and Weaker Positioning
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(Updated - March 26, 2021 5:12 AM EDT)
Goldman Sachs analyst Noah Poponak downgraded Hexcel Corp. (NYSE: HXL) from Neutral to Sell with a price target of $43.00 (from $43.00).
The analyst comments "We downgrade HXL to Sell from Neutral. From the trough in the sector, HXL shares have kept pace with other aerospace stocks despite fundamental drivers that could result in a slower recovery. Limited aftermarket, more exposure to widebody than narrowbody, and challenges in Wind result in the least free cash flow per share growth 2019 to 2025E in our comparable aerospace coverage. Despite that, HXL is our most expensive covered aerospace stock on most key metrics after HEI and TDG. It trades nearly in-line with TDG on CY23E EBITDA. It is consensus to expect domestic and narrowbody to recover faster than international and widebody, and HXL short interest is slightly elevated; but valuation leads us to believe potential challenges are not priced in."
Shares of Hexcel Corp. closed at $59.27 yesterday.
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