From Under-Appreciated Stock To Leading Aerospace Player By 2025: Analyst Elevates Hexcel's Outlook
Portfolio Pulse from Lekha Gupta
RBC Capital Markets analyst Ken Herbert has upgraded Hexcel Corp (HXL) to Outperform from Sector Perform and increased the price target to $85 from $75. Herbert expects aerospace growth to accelerate in 2024-2025 and sees HXL as well positioned to deliver better-than-expected margins and FCF upside. He estimates 2025 FCF to be $320 million, ahead of consensus, and expects operating margins to hit 17% in 2025 with sales of $2.3 billion. The analyst also raised the adjusted EPS estimate for FY24 and FY25.
August 15, 2023 | 6:22 pm
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Hexcel Corp (HXL) has been upgraded to Outperform from Sector Perform by RBC Capital Markets, with a raised price target of $85. The analyst expects better-than-expected margins and FCF upside, estimating 2025 FCF to be $320 million.
The upgrade by RBC Capital Markets and the raised price target indicate a positive outlook for Hexcel Corp. The analyst's expectations of better-than-expected margins and FCF upside, along with the estimated 2025 FCF of $320 million, suggest potential growth for the company. This could positively impact the company's stock price in the short term.
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