US stock futures edge lower after S&P 500 hits record high; PCE data in focus
Investing.com - Jefferies has raised its price target on Hexcel Corp . (NYSE:HXL) to $65.00 from $55.00 while maintaining a Hold rating on the aerospace materials company. The new target sits within the current analyst range of $55-$71, with the stock currently trading at $60.63. According to InvestingPro data, Hexcel trades at a P/E ratio of 55.8x, indicating a premium valuation.
The firm projects a 13% compound annual growth rate in production for Hexcel during 2025-2027, which is expected to drive 20% incremental margins in 2026 and 30% in 2027.
Jefferies forecasts Hexcel’s operating margin to reach 11.7% in 2025, 12.3% in 2026, and 13.8% in 2027, compared to consensus estimates of 13.5% for 2026 and 14.9% for 2027.
The analysis factors in 2% wage inflation with consistent headcount per shipset, 1% inflation on materials pricing, and fixed costs increasing by 2% on an absolute basis but decreasing per shipset.
Jefferies notes that every 100 basis points of margin improvement would translate to approximately 20 cents or 9% in earnings impact for Hexcel.
In other recent news, Hexcel Corporation reported second-quarter earnings for 2025 that exceeded analysts’ expectations. The company achieved an adjusted diluted earnings per share of $0.50, surpassing the forecasted $0.46, and reported revenue of $490 million, which was above the anticipated $474.69 million. This positive performance was partly attributed to tax benefits and stronger results in the Defense segment. In addition to the earnings report, BMO Capital raised its price target for Hexcel to $67 from $52, maintaining a Market Perform rating. UBS also adjusted its price target, increasing it to $65 from $60, while maintaining a Neutral rating. UBS highlighted Hexcel’s growth potential, driven by a significant backlog in large commercial aircraft, as a factor in their decision. These developments reflect recent evaluations and expectations from analysts regarding Hexcel’s financial health and growth prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.