Canaccord Genuity Sticks to Its Hold Rating for Hexcel

By Jason Carr

In a report issued on November 13, Kenneth Herbert from Canaccord Genuity maintained a Hold rating on Hexcel (NYSE: HXL), with a price target of $62. The company’s shares closed yesterday at $60.05.

Herbert commented:

“We spent a day on the road with Hexcel (HXL) management. The focus for HXL remains on the commercial OE cycle, and the cash conversion as build rates, notably on the new platforms (A350, 787, A320neo and 737 MAX) accelerate. HXL remains on track to hit its long-term FCF and revenue targets, and the recent move in the stock largely reflects the improved sentiment around the commercial cycle, bolstered by the 787- rate increase to 14/month, strong traffic, and renewed order activity, notably for Boeing. While HXL remains one of the best executing stocks in our universe, and we appreciate the straight-forward guidance and outlook, we are looking potential catalysts that can provide additional upside or improved sentiment. We are maintaining our HOLD rating and our $62 price target.”

According to TipRanks.com, Herbert is a 5-star analyst with an average return of 11.2% and a 62.8% success rate. Herbert covers the Consumer Goods sector, focusing on stocks such as Transdigm Group Inc, CPI Aerostructures, and Spirit AeroSystems.

Hexcel has an analyst consensus of Moderate Buy, with a price target consensus of $62.

Based on Hexcel’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $492 million and quarterly net profit of $69.7 million. In comparison, last year the company earned revenue of $505 million and had a net profit of $68.2 million.

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Hexcel Corp. engages in the development, manufacture, and market of advanced composite materials for the commercial aerospace, space and defense, and industrial markets. It operates through the following segments: Composite Materials, and Engineered Products.