Hexcel (HXL – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Gautam Khanna from TD Cowen maintained a Hold rating on the stock and has a $70.00 price target.
Geoff Meacham has given his Hold rating due to a combination of factors surrounding Hexcel Corporation’s (HXL) financial outlook and strategic focus. Hexcel’s recent investor day disclosed financial projections that were generally consistent with market consensus, with sales and EBITDA slightly surpassing expectations. Notably, Hexcel is planning to focus on mergers and acquisitions as a new avenue for cash deployment, after prioritizing organic investments that meet a minimum return on invested capital. Furthermore, the company’s management has expressed willingness to explore M&A opportunities in technology-rich applications both upstream and downstream, while maintaining share repurchases and dividends within their targeted net leverage range.
Additionally, Hexcel’s reaffirmation of its 2024 guidance indicates stable year-over-year sales growth, with commercial aerospace expected to lead the way despite some second-half skew due to narrowbody congestion. The company’s adjusted earnings per share (EPS) guidance for 2024 aligns closely with the Street’s expectations, though incrementals are projected to be lower than the Street’s initial high estimates. Despite facing margin pressures in the first half of the year, Hexcel anticipates benefits from existing labor and capacity arrangements, declining energy and raw material costs, and potential currency tailwinds. These factors contribute to the Hold rating, reflecting a balanced view of Hexcel’s growth prospects and operational challenges.
In another report released on February 12, Bank of America Securities also reiterated a Hold rating on the stock with a $75.00 price target.
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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:
- Event 1 Description: The company announced that it will host an investor day event on April 22, 2021, from 1:00 PM to 4:00 PM ET. The event will feature presentations from the executive team, focusing on strategic initiatives, financial updates, and long-term growth strategies. Attendees will have the opportunity to ask questions during a live Q&A session. The event will be webcasted live, and a replay will be available for those who cannot attend.
Event 2 Description: The company’s board of directors has approved a new stock repurchase program, authorizing up to $500 million in buybacks. In addition to any unspent amount authorized, this new program adds to the remaining funds from their 2018 program, allowing stock repurchases through various market transactions. Details and replays of the event are accessible on the company’s investor relations website, with the assurance that this information is not formally filed for regulatory purposes.
- Hexcel to hold virtual investor day
- Hexcel price target raised to $75 from $65 at BofA
- Hexcel Corporation Is Worried About This – Should You Be Worried Too?
- Hexcel downgraded to Neutral from Buy at UBS
