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On Wednesday, RBC Capital Markets adjusted its outlook on Hexcel Corp . (NYSE: NYSE:HXL), reducing the price target to $62 from the previous $70, while retaining an Outperform rating on the stock. The company recently disclosed its financial results for the first quarter of 2025, revealing an adjusted earnings per share (EPS) of $0.37 and a sales decline of 3%. According to InvestingPro data, seven analysts have recently revised their earnings estimates downward, though the company is expected to remain profitable with a forecasted EPS of $2.14 for fiscal year 2025. In response to the current market conditions, Hexcel has revised its 2025 guidance, indicating a projection of flat growth in its various end markets.
The analysts at RBC Capital believe that the revised guidance from Hexcel has effectively minimized the risks for the year 2025. Nonetheless, they also acknowledge the potential ongoing risk associated with the A350 aircraft, for which 68 deliveries are scheduled in 2025. Despite the lowered guidance, RBC Capital views positively the company’s emphasis on enhanced cost control measures.
The firm’s analysts have expressed confidence in the stock’s valuation, considering it attractive due to the anticipated potential for growth in the years 2026 to 2028. While the immediate outlook has been tempered with a new, lower price target, the Outperform rating suggests that RBC Capital continues to see Hexcel as a stock with favorable prospects in the medium term. This adjustment in price target reflects a comprehensive assessment of Hexcel’s current financial performance and future market position. For deeper insights into Hexcel’s valuation and growth prospects, including exclusive Fair Value calculations and detailed financial analysis, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Hexcel Corporation reported its first-quarter 2025 earnings, which fell short of expectations. The company disclosed an earnings per share (EPS) of $0.37, missing the projected $0.43, and revenue of $456.5 million, which was below the anticipated $480.53 million. These results led Hexcel to adjust its 2025 sales guidance downward by $85 million, primarily due to reduced production rates from key clients like Airbus and Boeing (NYSE:BA). The commercial aerospace segment saw a significant decrease in sales, while the defense and space segment experienced modest growth. In response to these challenges, Hexcel is implementing strategic measures such as stock buybacks and reducing capital expenditures. Analysts from BMO Capital Markets have downgraded Hexcel’s stock price target from $72.00 to $52.00, citing concerns over EPS for 2025. The firm maintained a Market Perform rating, reflecting a neutral stance on Hexcel’s stock performance amidst ongoing supply chain issues in the aerospace sector.
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