Hexcel stock price target raised to $87 by UBS on widebody growth

Published 24/10/2025, 15:22
Hexcel stock price target raised to $87 by UBS on widebody growth

Investing.com - UBS raised its price target on Hexcel Corp. (NYSE:HXL) to $87.00 from $81.00 on Friday, while maintaining a Buy rating on the aerospace materials manufacturer. The $5.8 billion market cap company currently trades at a premium valuation with a P/E ratio of 85.9x. According to InvestingPro data, analyst price targets for Hexcel range from $55 to $92.

The price target increase follows Hexcel’s third-quarter results, which UBS had previously identified as a potential trough for both revenue and margins ahead of a more stable multi-year aircraft production ramp. InvestingPro analysis shows the company maintains strong financial health with liquid assets exceeding short-term obligations and operates with a moderate debt-to-equity ratio of 0.53.

UBS noted that while depressed third-quarter revenue and margins have yet to be confirmed as the bottom, and the Airbus A350 production ramp remains a risk factor, the firm feels "increasingly confident the worst is behind" for Hexcel.

The investment bank cited several positive factors in its analysis, including Hexcel’s reduced 2025 guidance creating easier comparisons for 2026, the approaching closure of the Spirit Aero acquisition, and strong widebody aircraft backlogs.

UBS also highlighted encouraging signs regarding Airbus A350 production, noting that Hexcel reported purchase orders are at seven aircraft per month for the first half of 2026, and that regulatory progress is being made on the Spirit Aero acquisition.

In other recent news, Hexcel Corporation reported its third-quarter 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $0.37, slightly above the forecasted $0.36. Hexcel also reported a revenue of $456 million, which exceeded the anticipated $443.2 million. Following these results, RBC Capital raised its price target for Hexcel to $83 from the previous $70, maintaining an Outperform rating. These developments highlight a positive response from the market and analysts. The company’s financial performance and the subsequent analyst actions reflect strong investor confidence. Hexcel’s recent earnings call emphasized the company’s ability to exceed revenue and earnings forecasts. This information is crucial for investors considering Hexcel’s future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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