Matthew Akers, an analyst from Wells Fargo, maintained the Hold rating on Hexcel (HXL – Research Report). The associated price target is $81.00.
Matthew Akers has given his Hold rating due to a combination of factors concerning Hexcel’s recent financial performance and future projections. The Q4 adjusted earnings per share (EPS) reported by Hexcel came in at $0.43, which is lower than both Wells Fargo’s model at $0.53 and the consensus estimate of $0.49. Additionally, the guidance for the adjusted EPS in 2024 was set at $2.10 to $2.30, again falling short of the anticipated figures of $2.41 and $2.47 from Wells Fargo and consensus estimates, respectively. The sales forecast also did not meet expectations, with a projection of $1.93 to $2.03 billion against the Wells Fargo model of $1.99 billion and consensus of $2.02 billion.
The report also notes underperformance in specific segments, such as industrial sales being 27% below Wells Fargo’s model, predominantly due to declines in various industrial markets despite an increase in automotive sales. However, there were some positive aspects, such as a favorable foreign exchange impact on margins and stronger-than-expected free cash flow (FCF) during the quarter. Additionally, strategic financial moves, such as the UK pension plan transfer, which eliminated future liabilities, and the sale of Hexcel’s interest in Aerospace Composites Malaysia, have improved the company’s cash position. These mixed indicators likely led Akers to maintain a neutral stance with a Hold rating on Hexcel’s stock.
In another report released on January 10, Goldman Sachs also upgraded the stock to a Hold with a $70.00 price target.
See Insiders’ Hot Stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Hexcel (HXL) Company Description:
Hexcel Corp. engages in the development, manufacture, and market of advanced composite materials for the commercial aerospace, space and defense, and industrial markets. It operates through the following segments: Composite Materials; Engineered Products; and Corporate and Other. The Composite Materials segment comprises of carbon fiber, specialty reinforcements, resins, prepregs and other fiber-reinforced matrix materials, and honeycomb core product lines and pultruded profiles. The Engineered Products segment consists of lightweight high strength composite structures, engineered core and honeycomb products with added functionality, and additive manufacturing. The company was founded by Roger C. Steele and Roscoe T. Hughes in 1946 and is headquartered in Stamford, CT.
Read More on HXL:
