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Investing.com - UBS upgraded Hexcel Corp. (NYSE:HXL), the $5 billion market cap aerospace materials company, from Neutral to Buy and raised its price target to $80.00 from $65.00. According to InvestingPro data, the stock currently trades at a high earnings multiple with a P/E ratio of 58.4.
The investment firm cited expected inflection in widebody aircraft production in 2026 as a key driver for the aerospace materials company’s growth prospects.
UBS analyst Gavin Parsons projects that the production increase will generate mid-teens revenue growth for Hexcel, along with a 300 basis point margin expansion.
While UBS acknowledged challenges in the third quarter related to Airbus A350 destocking, it believes this period could represent a trough for both revenue and margins before a more stable multi-year aircraft production ramp begins.
The firm forecasts 5-7% upside to consensus EBITDA estimates for Hexcel in 2026 and 2027, as improved production stability should enable better cost alignment for the company.
In other recent news, Hexcel Corporation reported its second-quarter earnings for 2025, exceeding analysts’ expectations with an adjusted diluted earnings per share of $0.50, against a forecast of $0.46. The company also reported a revenue of $490 million, surpassing the anticipated $474.69 million. Analysts from Jefferies raised Hexcel’s stock price target to $65, citing a projected 13% compound annual growth rate in production from 2025 to 2027. BMO Capital also increased its price target for Hexcel to $67, noting better-than-expected earnings due in part to tax benefits and strong performance in the Defense segment. UBS adjusted Hexcel’s price target to $65, maintaining a Neutral rating, and highlighted the growth potential supported by a large commercial aircraft backlog. These developments reflect a positive outlook from various analyst firms regarding Hexcel’s future performance.
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