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Investing.com - UBS raised its price target on Hexcel Corp . (NYSE:HXL) to $65.00 from $60.00 on Monday, while maintaining a Neutral rating on the aerospace materials manufacturer. The new target sits within the broader analyst range of $52-$71, with the stock currently trading at a relatively high P/E ratio of 57.3x.
The price target adjustment reflects UBS’s assessment of Hexcel’s growth potential supported by the extensive large commercial aircraft backlog, which the firm believes will drive long-term earnings growth. According to InvestingPro data, the company maintains healthy financials with a current ratio of 2.69 and operates with moderate debt levels, positioning it well for future expansion.
UBS noted that volume growth should drive strong operating leverage for Hexcel, particularly once Airbus A350 supply chain bottlenecks are resolved—a situation that appears to be improving with Airbus and Spirit AeroSystems (NYSE:SPR).
Despite the higher price target, UBS maintained its Neutral stance, citing limited upside potential until the market gains more confidence regarding the near-term trough in Hexcel’s business.
The firm also pointed out that while incremental margins will benefit from increased volumes, the upside remains uncertain as long as potential downside risks persist in the current market environment.
In other recent news, Hexcel Corporation announced its second-quarter earnings for 2025, which exceeded analysts’ expectations. The company reported an adjusted diluted earnings per share (EPS) of $0.50, surpassing the projected $0.46. Additionally, Hexcel’s revenue reached $490 million, beating the anticipated $474.69 million. Despite these positive financial results, the stock price experienced a decline, although this was not due to the company’s performance. The decline was attributed to broader market concerns and specific challenges within the sector. These developments reflect the company’s ability to outperform financial forecasts, even amid external pressures. Investors may find these figures significant as they assess Hexcel’s financial health.
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