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Investing.com - BofA Securities has maintained its Underperform rating and $60.00 price target on Hexcel Corp. (NYSE:HXL), citing ongoing commercial delivery softness and margin challenges for the aerospace materials company. The stock, currently trading at $63.88, appears fairly valued according to InvestingPro analysis, with analyst targets ranging from $55 to $80.
The research firm noted that despite improving build rates at both Boeing and Airbus, Hexcel has not yet seen meaningful benefits due to excess channel inventory in the supply chain. While the company maintains healthy financials with a current ratio of 2.69 and moderate debt levels, revenue growth has been modest at 1.46% over the last twelve months.
BofA expects the majority of this excess inventory to be depleted by the fourth quarter, as Boeing and Airbus look to increase production rates in late 2025 and beyond.
The firm highlighted additional risk factors that could impact Hexcel’s revenue and margin expansion, specifically mentioning a potential strike at Airbus and direct tariff impacts.
BofA’s $60.00 price target for Hexcel remains unchanged as the firm continues to see headwinds for the aerospace materials supplier despite the gradually improving commercial aircraft production environment.
In other recent news, Hexcel Corporation reported its second-quarter earnings for 2025, which exceeded analysts’ expectations. The company achieved an adjusted diluted earnings per share (EPS) of $0.50, surpassing the forecasted $0.46, and reported revenue of $490 million, beating the anticipated $474.69 million. UBS upgraded Hexcel’s stock rating from Neutral to Buy, citing anticipated growth in widebody aircraft production by 2026 as a key factor for the company’s prospects. Jefferies raised its price target for Hexcel to $65 from $55, maintaining a Hold rating and projecting a 13% compound annual growth rate in production for 2025-2027. BMO Capital increased its price target to $67 from $52, noting Hexcel’s better-than-expected earnings, partly due to tax benefits, with strong performance in its Defense segment. Additionally, UBS adjusted its price target to $65 from $60, maintaining a Neutral rating, based on Hexcel’s growth potential linked to a substantial commercial aircraft backlog. These developments highlight significant analyst interest and adjustments in Hexcel’s projected financial performance.
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